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Gold futures slipped on Tuesday, relinquishing gains from a day ago, as Treasury yields and stocks headed higher amid muted optimism for a partial U.S.-China trade pact, sapping some appetite for bullion.
“Rallies remain shallow as gold traders still think a trade deal will happen,” wrote Stephen Innes, market strategist at AxiTrader in a daily research note.
December gold GCZ19, -0.13% on Comex gave up $3.60, or 0.2%, after gaining 0.2% on Monday. Silver for December delivery SIZ19, +0.53%, meanwhile, added 7 cents, or 0.4%, adding to its 0.% rise, a day ago.
Gold’s decline comes as U.S. Treasury yields edged up and stocks looked to extend a record run for a third straight day. The 10-year benchmark note TMUBMUSD10Y, -0.43% yielded around 1.814% from 1.808% on Monday.
Doubts about a genuine Sino-American trade detente and fears that the stock market has gotten ahead of itself during its recent uptrend has also helped to keep bullion buoyant.
“However, gold remains supported by the fact a comprehensive trade deal, one which would include tariffs rolls back and could shift more neutral the dovish central bank narrative, as unlikely,” Innes wrote.
