Gold slips to 11-day low as risk assets draw bids
- Gold's price pullback continues amid risk-on action in the financial markets.
- Risk assets are drawing bids on continued easing of US-China tensions.
- Gold may find some love if China's trade data prints below estimates.
Gold continues to lose altitude amid increased demand for risk assets.
At press time, the yellow metal is trading at $1,537 per Oz, the lowest level since Jan. 3. Prices are currently down nearly 4.6% from the six-year high of $1,611 reached last week.
The yellow metal is losing altitude amid the uptick in the risky assets. The futures on the S&P 500 are currently reporting a 0.10% gain, meaning the index is likely to open Tuesday on a positive, having hit fresh record highs on Monday.
The Asian equities are also flashing green at press time with Japan's Nikkei index adding 171 points or 0.80%.
The risk assets are drawing bids, possibly due to the continued easing of US-China trade tensions.
The US Treasury on Monday removed China’s designation as a currency manipulator, offering a major concession to the Chinese officials ahead of the signing of the phase-one trade deal on Wednesday.
Focus on China data
While gold is on the defensive at press time, it may change course if the China trade data due at 03:00 GMT, misses expectations by a big margin, forcing investors to reassess the prospects of China and global growth rebound in 2020.
A weaker-than-expected data could weigh over the risk assets, putting a bid under safe havens like gold.