Gold prices edged lower on Monday as riskier assets gained in strength after positive comments from U.S. and China raised optimism the two countries will sign a phase one trade deal by the end of the year.

A somewhat steady dollar too contributed to the yellow metal’s weakness.

The dollar Index, which rose to 98.38 in early trades, dropped to a low of 98.20 before recovering to 98.32, gaining marginally over previous close.

Gold futures for December ended down $6.70, or about 0.5%, at $1,456.90 an ounce.

On Friday, gold futures for December ended flat at $1,463.60 an ounce.

Silver futures for December closed down $0.114 at $16.886 an ounce, while Copper futures for December ended at $2.6475 per pound, down slightly from previous close.

There is renewed optimism about a U.S.-China trade agreement after a tabloid run by China’s ruling Communist Party discounted “negative” media reports and said the economic superpowers are “very close” to a phase one deal.

The state-backed Global Times said on Twitter that China also remains committed to continuing talks for a phase two or even a phase three deal with the United States.

U.S. national security adviser Robert O’Brien said an initial trade deal was still possible by the end of the year.

U.S. President Donald Trump and Chinese President Xi Jinping have also recently made positive comments about a potential trade deal despite reports of complications arising that could delay the agreement until next year.

The material has been provided by InstaForex Company – www.instaforex.com