Gold prices slipped on Tuesday in Asia as the appetite for risk among investors has seemingly returned.
Gold Futures for December delivery were down 0.9% at $1,497.95 per ounce by 12:10 AM ET (04:10 GMT) on the Comex division of the New York Mercantile Exchange.
Positive trade developments between the U.S. and China sent stocks higher this month as the two sides confirmed in-person meetings will resume in October. That caused gold to lose some safe-haven appeal.
Asian markets were mixed today, with Chinese stocks underperforming following the release of weak inflation data. Australian stocks also fell on weak business confidence.
Separately, reports that the flood of China’s central bank buying of gold is drying up also put pressure on gold prices.
The People’s Bank of China raised its gold holdings to 62.45 million ounces in August from 62.26 million ounces a month earlier, according to data on its website at the weekend. However, that represented purchases of only 5.91 tons in the month, after an average of 11.75 tons a month since December.
Despite the fall today, the precious metal has risen about 19% this year through mid-August. Prospect for lower interest rates and safe-haven demand amid slowing global economic growth were cited as tailwinds for gold.