Demand for gold from worried investors – seeking safe havens – has decreased after signs of eased geopolitical tensions between the world's two largest economies ahead of the meeting between the US President Donald Trump and China's leader Xi Jinping next week.
At the same time, India has slowed a seasonally driven increase in gold purchases.
Fear of a correction and consolidation has increased, says Ole Hansen, commodity strategist at Saxo Bank to Bloomberg.
The spot price of silver has also been pushed downward by 5 percent to just under 50 dollars per ounce.
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