Metals Stocks: Gold edges lower as market participants weigh trade deal, earnings season

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Gold traded lower on Tuesday as market participants awaited clarity on U.S.-China trade talks and as earnings season starts on a positive note.

Gold for December delivery on Comex GCZ19, -0.43%  was off $6.50, or 0.4%, at $1,491.10 an ounce, while December silver SIZ19, -1.07%  gave up 18.5 cents, or 1%, to trade at $17.525 an ounce.

“Gold traded above the $1,490 an ounce, supported by softer sovereign yields. But there is a visible malaise above the $1,500 handle, where sellers remain in charge of the market,” said Ipek Ozkardeskaya, senior market analyst at London Capital Group, in a note.

The yield on the 10-year U.S. Treasury note TMUBMUSD10Y, -0.80%  fell 2.9 basis points to 1.701%. Lower yields on government debt can be a positive for assets like gold that offer no yield.

But a positive start to stocks as earnings season begins in earnest appeared to rob gold of some haven appeal, while investors also attempted to pin down the state of U.S.-China trade negotiations after initial optimism over a partial deal at the end of last week faded.

Analysts said expectations around the talks were buoyed somewhat after the spokesman for China’s foreign ministry was quoted as saying Washington and Beijing were “on the same page.”

In other metals trade, December palladium PAZ19, +0.75%  rose 0.9% to $1,702.30 an ounce, while January platinum PLF20, -0.51%  was off 0.5% at $895.30 an ounce. December copper HGZ19, -0.93%  was off 0.9% at $2.609 a pound.