The yellow metal declines against the rise in the dollar

Gold prices fell today, affected by the rise in the dollar and indications of easing trade tensions between the United States and China, as traders await major central bank meetings later this week.

By 01:20 GMT, gold in spot transactions fell 0.5 percent to $4,092.76 per ounce.

US gold futures for December delivery fell 0.7 percent to $4,106.80 an ounce.

The dollar rose to its highest levels in more than two weeks against the yen during the day, making gold more expensive for holders of other currencies.

US officials said on Sunday that senior Chinese and American economic officials had developed a framework for a trade agreement for US President Donald Trump and Chinese President Xi Jinping to make a decision later this week.

This agreement would temporarily halt the highest tariffs imposed by the United States on China and controls China’s export of rare earth metals.

At the same time, the Federal Reserve is widely expected to cut interest rates by a quarter of a percentage point at its meeting on Wednesday.

Investors will await any comments indicating the future path of interest rates from Jerome Powell, Chairman of the Federal Reserve, as the US central bank is widely expected to cut interest rates at its meeting in December.

Gold, a non-yielding asset, tends to rise in a low interest rate environment.

As for other precious metals, silver in spot transactions decreased 0.3 percent to $48.44 per ounce, platinum increased 0.5 percent to $1,612.95, and palladium rose 0.2 percent to $1,431.94.