Prices of the safe-haven Gold slipped on Tuesday in Asia, while stock markets rebounded as traders cheered a temporary reprieve in U.S.-China trade tensions surrounding Chinese telecommunications giant Huawei.
Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, were down 0.2% to $1,275.05 by 1:22 AM ET (05:22 GMT).
The fall in gold prices came after the U.S. Commerce Department said overnight that it will temporarily allow Huawei to purchase U.S.-made goods for at least 90 days.
“The tension between US and China may ease slightly today after US officials said it would grant 90-day reprieve from penalties to Huawei and its subsidiaries, ” analysts at OCBC Treasury Research wrote in a morning note.
The U.S.-China trade war has been one of the pillars of support for gold this year as investors used the yellow metal as a safe haven in times of both economic and political troubles.
Asian markets traded mostly higher on Tuesday, with China’s Shanghai Composite and the SZSE Component gaining 1.3% and 2.2% respectively.
The precious metal was also pressured by the rising U.S. Dollar, which received some support from data that showed U.S. consumer sentiment jumped to a 15-year high in early May.
