Gold Falls from 14-Month High as Demand for Safe Harbor Assets Declines

Economy and stock exchange

Gold prices fell from a 14-month high on Monday after the US-Mexico agreement to avoid a trade war reduced the demand for a safe haven gold.

By 0530 GMT, spot gold fell 0.9 percent to $ 1328.08 an ounce. In the previous session, the metal hit its highest level since April 19, 2018 at 1348.08 dollars an ounce.

Gold in US futures was down 1 percent at $ 1332.20 an ounce.

The United States and Mexico signed an agreement last Friday to avert a trade war, with Mexico agreeing to quickly expand a controversial asylum program and deploy a security force to stem the flow of illegal immigrants from Central America.

US President Donald Trump also defended the deal with Mexico in the face of criticism that there were no major new commitments to stem the flow of Central American immigrants to the United States and said on Sunday that more details would be announced soon.

US and Asian stock futures rallied on Monday after the United States gave up its threat to impose customs duties on Mexico in an agreement to combat illegal immigration from Central America, while weak data for US jobs boosted hopes of a US cut in interest rates..

Investors will now look to any developments in trade between China and the United States, while the protracted conflict between the two countries has dampened market optimism..

For other precious metals, silver fell 1.3 percent to $ 14.79 an ounce, platinum settled at $ 806.28 an ounce, while palladium fell 0.3 percent to $ 1353.55 an ounce.

(t tags) Gold (t) Gold prices (t) America (t) Mexico (t) Business war (t) Safe haven (t) United States