Gold Futures Settle Lower For 2nd Straight Session

Gold prices drifted lower on Tuesday, extending losses from the previous session, amid continued optimism about U.S.-China trade deal.

Investors were also looking ahead to the Federal Reserve’s interest rate decision, due Wednesday afternoon.

The dollar retreated after early gains and was last seen at 97.71, down from previous close of 97.76.

Gold futures for December ended down $5.10, or about 0.3%, at $1,490.70 an ounce.

On Monday, gold futures for December ended down $9.50, or 0.6%, at $1,495.80 an ounce.

Silver futures for December declined $0.045 to settle at $17.831 an ounce, while Copper futures for December settled at $2.6915 per pound, up $0.0085 from previous close.

U.S. President Donald Trump on Monday said that the first phase of a trade pact with China could be signed “ahead of schedule” and the aim was to sign the accord at the APEC summit between him and Xi in Chile next month.

Trump and his Chinese counterpart Xi Jinping are scheduled to attend the Asia-Pacific Economic Cooperation forum on November 16-17 in Santiago, Chile. Trump described the pact as the first part of a process that could unfold in three phases.

The United States Trade Representative said it is studying whether to extend tariff suspensions on $34 billion of Chinese goods set to expire later in December.

Meanwhile, a report from Reuters citing a U.S. administration official said the United States and China are continuing to work on an interim trade agreement, but it may not be completed in time for the U.S. and Chinese leaders to sign it in Chile next month.

The Federal Reserve, which will conclude a two-day monetary policy meeting on Wednesday, is widely expected to reduce interest rate by 25 basis points.

The material has been provided by InstaForex Company – www.instaforex.com