Gold Dips As Xi Comments Revive Risk Appetite
His comments sent U.S. S&P 500 E-mini futures higher by 1.2 percent, while MSCI's broadest index of Asia-Pacific shares outside Japan recovered from early falls and advanced 0.8 percent
Gold prices erased early gains to trade lower on Tuesday after Chinese President Xi Jinping promised to lower import tariffs on certain products, helping soothe fears over an escalating trade row with the United States.
Xi promised to open the country's economy further and lower import tariffs on products including cars.
His comments sent U.S. S&P 500 E-mini futures higher by 1.2 percent, while MSCI's broadest index of Asia-Pacific shares outside Japan recovered from early falls and advanced 0.8 percent.
The dollar was up 0.3 percent at 107.130 yen after going as high as 107.245. The greenback had fallen in the two previous sessions as rhetoric from Chinese and U.S. policymakers had kept markets wary.
Spot gold was down 0.2 percent at $1,333.90 an ounce as of 0321 GMT, after rising to a near one-week high of $1,338.12 earlier in the session.
U.S. gold futures fell 0.2 percent to $1,337.50 an ounce.
Meanwhile, concerns over reports of a poison gas attack in Syria offered underlying support to the bullion which is often seen as an alternative investment during times of political and financial uncertainty.
"With geopolitical risk in the Middle East bubbling and the never-ending trade war headline risks, gold bid has remained exceptionally firm as the possibility of U.S. military intervention in Syria has increased dramatically after an alleged chemical-weapons attack," said Stephen Innes, APAC trading head at OANDA.
The United States plans to call for a U.N. Security Council vote on Tuesday on a proposal for a new inquiry into responsibility for use of chemical weapons in Syria after reports of a poison gas attack on a rebel-held town, diplomats said.
U.S. President Donald Trump on Monday promised quick, forceful action in response to the suspected attack, appearing to suggest a potential military response.
In other precious metals, silver was steady at $16.45 an ounce, platinum gained 0.3 percent to $934.55 an ounce, and palladium rose 0.3 percent to $932 an ounce.