Gold fell the most after trade truce was reached between the US and China in the G-20 meet. China has given hopes that the resolution on the trade can be arrived at if the 2 nations go by the consensus reached by their leaders. In Monday's trading session, the yellow metal retreated over 1% as dollar gained and investors shifted to riskier assts, making the appeal for gold as safe-haven fade away.
Spot gold was down 1.3% at $1,391.29 per ounce as of 0411 GMT, after falling to as low as $1,389.65, its lowest since June 21. U.S. gold futures dipped 1.3% to $1,394.90 an ounce.
Given the economic outlook, where resumption of trade talks between the US and China is expected to boost share markets across the region, there is likely to be seen a high degree of volatility in the price of gold.
Earlier on May 14, 2013, gold climbed to its 6-year high price of $1438.63 on weaker dollar and as concerns lingered around escalating US-Iran nuclear dispute.
But after the US President brought in some relief by way of no new levy on Chinese imports and lesser restriction on Huawei, expectations are stronger that the companies are making attempt to solve the ongoing trade dispute.
In India, MCX gold is trading down at a similar rate of 1.23% or Rs. 420 at Rs. 33786.