haven demand went down following positive developments in global trade.
The most active gold contract for August delivery went down 24.4 U.S. dollars, or 1.73 percent, to settle at 1,389.30 dollars per ounce.
As China and the United States agreed on Saturday to restart economic and trade consultations, the world's two largest economies finally returned to the right track to solve their trade issues. The U.S. side also said it will not add new tariffs on Chinese exports. All the developments led to the fading of demand for gold, a safe haven asset, said analysts. Meanwhile, the U.S. dollar index, a measure of the greenback against a basket of other major currencies, rose 0.7 percent to 96.80 shortly before the gold's settlement. Gold and the dollar typically move in opposite directions. When the dollar rises, it will pressure gold, which is priced in the dollar, thus makes the bullion more expensive for investors holding other currencies. As for other precious metals, silver for September delivery was down 14.8 cents, or 0.96 percent to close at 15.193 dollars per ounce. Platinum for October delivery was down 3.90 dollars, or 0.46 percent, to settle at 837.20 dollars per ounce.
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