Gold stocks sink as US-China trade hopes drag down bullion prices
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The news: Gold miners retreated in morning trade, tracking a decline in global gold prices as ongoing trade talks between the US and China showed signs of promise.
The numbers: Gold stocks made up eight of the nine worst performing ASX 200 companies at midday AEST. West African Resources (-6.7%), Emerald Resources (-5.3%) and Vault Minerals (-5.1% were worst hit by the selloff.
Spot gold was down 0.59% to USD3,307 an ounce, according to Bloomberg data.
The context: Negotiations between US and China officials in London concluded overnight, with talks set to resume on Tuesday morning local time. The US delegation signalled that it may ease some restrictions on technology exports if China relaxes export controls on rare earths.
The comments increased expectations for a possible trade agreement between the two countries, sending gold prices lower. The commodity has soared in recent weeks on the back of global trade tensions, which boosted the precious metal's appeal as a safe haven asset.
The source: Bloomberg
