Gold Prices Under Pressure As U.S.-China Trade Tensions Ease

New York (Aug 13)  Gold prices have fallen sharply from its fresh six-year high as sentiment within financial markets has shifted rapidly.

According to market analysts, investors are jumping back into equities as trade war tensions appear to be easing. The improvement in risk sentiment came after the U.S. Trade Representative (USTR) said additional tariffs on some Chinese goods, including cell phones and laptops, will be delayed until Dec. 15.

"Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent," the USTR said. "USTR intends to conduct an exclusion process for products subject to the additional tariff."

Although off its session lows the gold market is currently down more than $30 in reaction to the latest trade news. The selloff comes after the yellow metal hit a fresh six-year high overnight due to concerns that the ongoing trade war between the U.S. and China will lead to lower economic growth.

Gold has sold off as equity markets have pushed to session highs. December gold futures last traded at $1,509.60 an ounce, down 0.50% on the day. Meanwhile, the S&P 500 las traded at 2931 points, up 1.68% on the day.

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