Gold retreated on Thursday as investors booked profits after the metal rallied to a six-year peak in the previous session and hopes of a thaw in U.S.-China trade ties spurred demand for riskier assets.
Spot Gold fell 0.7% to $1,541.20 per ounce, having scaled $1,557 on Wednesday, its highest since April 2013. U.S. gold futures dropped 0.7% to $1,549.70 per ounce.
“The fact that they (U.S. and China) have agreed to restart talks probably has taken a little bit of steam off gold. We saw gold touching a high at $1,557, so it bounced down slightly; could just be an element of profit taking,” said Philip Newman, a director at Metals Focus.