Investing.com – Prices of safe-haven gold slipped on Tuesday in Asia, while stock markets rebounded as traders cheered a reprieve in U.S.-China trade tensions after Washington temporarily eased restrictions on 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).
Risk appetite recovered somewhat after the U.S. Commerce Department said it will allow Huawei to continue to purchase U.S.-made goods until Aug. 19.
“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, with investors using the yellow metal as a safe haven in times of economic and political uncertainty.
Asian markets traded mostly higher on Tuesday, with China’s Shanghai Compositeand the SZSE Component gaining 1.3% and 2.2% respectively.