Gold sinks most in a year on trade truce

Bloomberg

Gold tumbled back below $1,400 an ounce after the US and China reached a truce in their trade war, dealing a blow to havens.
Prices fell the most in a year after Donald Trump and Xi Jinping agreed to resume negotiations. Still, the setback may be temporary as investors now train their focus on US jobs data due on Friday for clues on the Federal Reserve’s next move on policy.
“Gold was well overdue a period of consolidation and gold bulls should welcome it,” said Ross Norman, chief executive officer of gold brokerage Sharps Pixley Ltd. “This provides a welcome entry point.”
Bullion hit a six-year high last week as top central banks including the US Federal Reserve adopted a more dovish tone and tensions spiked between the US and Iran. Driven by speculation that US interest rates may soon be headed lower, investors plowed into bullion-backed exchange-traded funds, which swelled 5 percent in June, the most since 2016.