As Treasury yields increased and investors assessed the potential elimination of some US tariffs on Chinese consumer products that could reduce inflation, gold bars decreased in value.
Gold fell 0.5 percent in Asian trading after two sessions of comparable gains. When the 50-day moving average drops below the 200-day moving average, prices have created a pattern known as a “death cross,” which some traders view as a bearish omen.
Biden may waive some fees on Chinese goods
It would be positive for consumers and inflation if any of the tariffs placed on Chinese goods by the Trump administration were removed under the Biden government. If it is approved, it may indicate that the Fed won’t need to take as many steps to reduce inflation, which would be beneficial for gold prices, according to Brian Lahn, managing director of Singapore-based dealer GoldSilver Central Pte.
After increasing 0.3 percent on Monday, spot gold decreased 0.3 percent to $1,811.10 an ounce in early trading on Tuesday in Singapore.