Gold Drops to Two-Week Low as Trade Hopes Curb Haven Appeal

(Bloomberg) -- Gold dropped to a two-week low on signs of potential trade-talk progress between the US and other nations, quelling demand for a haven despite worries about weakening economies.

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Prices slipped as much as 2.6% as market sentiment improved on Wall Street after National Economic Council Director Kevin Hassett said the Trump administration is making progress in tariff talks and that he expects news by the end of the day.

Bullion is still up 22% this year after hitting a record above $3,500 last week before losing some ground. The ascent has been driven mainly by investors taking refuge in the haven asset as Trump’s fast-evolving trade policy upended markets and stoked fears of a global slowdown. Speculative demand in China and central-bank buying has also supported gains.

Looking ahead, a key monthly US jobs report due Friday will shed more light on the initial effects from Trump’s trade policies on the economy.

Spot gold was 2.4% lower at $3,211.42 an ounce by 12:25 p.m. in New York. The Bloomberg Dollar Spot Index rose 0.6%. Silver fell by more than 1% and platinum slipped while palladium was little changed.

--With assistance from Jack Ryan.

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