- US-China trade talks set to extend to second day
- Trump says 'doing well' with China
June 10 (Reuters) - Gold prices declined on Tuesday, hurt by an uptick in the U.S. dollar as market participants awaited details from the second day of trade talks between the U.S. and China in London.
Spot gold fell 0.6% to $3,307.72 an ounce, as of 0502 GMT. U.S. gold futures slipped 0.8% to $3,327.50.
The dollar index rose 0.3% against its rivals, making gold more expensive for other currency holders.
The trade talks between the world's two largest economies encompass issues ranging from tariffs to rare earth metals restrictions.
"With U.S.-China trade talks still in the works, gold is trading reservedly until we see any progress is made between the two global superpowers," said Tim Waterer, chief market analyst at KCM Trade.
U.S. President Donald Trump said his administration was "doing well" in the negotiations.
Last month, both sides agreed to a temporary pause in tariffs against each other, offering some relief to financial markets.
Data from China showed export growth slowed to a three-month low in May as U.S. tariffs affected shipments, while factory-gate deflation worsened to its deepest level in two years.
Meanwhile, U.S. inflation data, due on Wednesday, could give investors more guidance on the U.S. Federal Reserve's monetary policy path.
"If CPI has ticked marginally higher, that would be an expected result, but if it jumps, then that could raise some alarm bells for investors, and any resulting flight to safety could help the gold price," Waterer said.
Gold gains appeal during times of geopolitical and economic uncertainty and tends to do well when interest rates are low.
Elsewhere, spot silver was down 0.5% to $36.52 per ounce, platinum was flat at $1,219.65, while palladium gained 0.4% to $1,078.94.
Reporting by Anmol Choubey in Bengaluru, additional reporting by Brijesh Patel; Editing by Harikrishnan Nair and Rashmi Aich
Source: Reuters