Gold prices slide 3.0pc

Gold dropped 3 per cent to a more than one-week low on Monday after the United States and China said they had agreed to a deal to cut reciprocal tariffs, sending the dollar higher and denting the safe-haven metal's appeal, reports Reuters.

Spot gold was down 3.1 per cent at $3,223.57 an ounce, as of 1203 GMT, its lowest since May 1. US gold futures slipped 3.5 per cent to $3,228.80.

"The de-escalation of tensions between China and the US, with tariffs being reduced for 90 days, is reducing the demand for safe haven assets like gold," said UBS analyst Giovanni Staunovo.

"Near-term prices are likely to stay volatile. But higher tariffs are still weighing on economic growth and (will) likely force central banks to cut... interest rates later this year. Also central banks might use this price setback to add exposure."

Meanwhile, the dollar index jumped more than 1 per cent against its rivals, making gold more expensive for other currency holders.

Gold is expected to decline as the dollar appreciates. Decreased geopolitical risk could "hurt the haven demand... the yellow metal may decline to $3,200/oz in the near term," said Jigar Trivedi, senior commodity analyst at Reliance Securities.

Spot silver slid 1.2 per cent to $32.28 an ounce, platinum fell 1.7 per cent to $978.5 and palladium dipped 1.5 per cent to $961.17.