Gold Price Dips On Improved Risk Appetite

New York (Jan 8)  Gold prices fell slightly on Tuesday as hopes for US-China trade deal and dovish comments from Fed Chairman Jerome Powell bolstered investors' appetite for risk.

Spot gold was marginally higher at USD1,283.06 per ounce while US gold futures were down 0.45% at USD1,284.05 per ounce.

The dollar gained ground versus its peers as investors kept an eye on discussions going on between US and China.

US Commerce Secretary Wilbur Ross said on Monday that there's a very good chance that Beijing and Washington could reach a trade deal that "we can live with".

Some analysts, however, remain skeptical over the possibility of a breakthrough.

Meanwhile, there are expectations that the Federal Reserve may not be in a position to hike interest rates at all during 2019 due to the deteriorating global economic outlook.

Fed Chair Powell said last week that the US central bank would be more data dependent and patient with interest rate policy.