Gold down on China-US trade developments

CHICAGO -- Gold futures on the COMEX division of the New York Mercantile Exchange fell on Tuesday as senior officials from China and the United States spoke about a possible trade deal.

The most active gold contract for December delivery fell $16.1, or 0.83 percent, to close at $1,923.1 per ounce.

The precious metal was under extensive pressure as investors reacted favorably to the announcement of a phone meeting between Chinese Vice-Premier Liu He, and US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin. Market analysts noted that the discussion included macroeconomic policy coordination and the implementation of the Phase One agreement.

Gold was under additional pressure as the new home sales report released by the US Department of Commerce on Tuesday showed sales reached 901,000 units in July, the best reading of this measure since 2006.

A report released on Tuesday by The Conference Board showed consumer confidence index fell to 84.8 in August. The figure, worse than expected and much lower than the reading of 91.7 in July, lent some support to gold. Analysts attributed the fall to continuing pessimism over the COVID-19 pandemic in the United States.

Silver for September delivery fell 33.4 cents, or 1.26 percent, to close at $26.273 per ounce. Platinum for October delivery rose $9.5, or 1.03 percent, to close at $934 per ounce.