October 14, 2019 / 1:11 AM / a month ago

PRECIOUS-Gold slips as renewed trade optimism lifts risk appetite

Oct 14 (Reuters) - Gold prices eased on Monday, extending falls into a third session, as news that the United States and China had made progress in their recent high-level trade talks lifted risk appetite.

FUNDAMENTALS

* Spot gold dropped by 0.3% to $1,485.56 per ounce, as of 0036 GMT. U.S. gold futures edged 0.1% higher to $1,489.90.

* Spot gold prices fell more than 1% in intraday trade on Friday on news that the United States and China were likely to reach a partial agreement on trade.

* U.S. President Donald Trump on Friday outlined the first phase of a deal and suspended a threatened tariff hike, but officials on both sides said much more work needed to be done before an accord could be agreed.

* The possible deal, covering agriculture, currency and some aspects of intellectual property protections, would represent the biggest step by the two countries in 15 months.

* This renewed appetite for riskier assets, with MSCI’s broadest index of Asia-Pacific shares ex-Japan up 0.5%.

* The dollar climbed higher from a three-week low hit in the previous session, and traded near multi-month highs versus the yen, also considered a safe-haven asset.

* The coming days will be crucial for Britain, as it prepares for its departure from the European Union on Oct. 31, with both parties claiming a lot more work would be needed to secure an agreement.

* Britain said there would be more talks later on Monday, with Prime Minister Boris Johnson hoping a deal will be agreed in time for EU leaders to approve it at a summit in Brussels on Thursday and Friday.

* Markets also look for signs the U.S. Federal Reserve will cut interest rates at its next meeting later in the month.

DATA/EVENTS AHEAD (GMT)

0630 India WPI Inflation YY Sept

N/A China Exports YY Sept

N/A China Imports YY Sept

N/A China Trade Balance USD Sept

Reporting by Karthika Suresh Namboothiri in Bengaluru; Editing by Subhranshu Sahu

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