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Gold Prices Lose Momentum After Hitting One-Month High

Investing.com - Gold prices traded lower on Tuesday in Asia after hitting a one-month high the previous day.

Gold futures traded on the Comex division of the New York Mercantile Exchange were down $5.05, or 0.4%, at $1,323.95 per ounce by 1:40 AM ET (05:40 GMT).

The fall in gold prices came as stock markets and other risky assets recovered from a tumble on Monday.

The precious metal received support the previous day after the spreads between U.S. three-month and 10-year Treasury yields modestly inverted and sparked fears of a potential U.S. recession.

Gold is widely known as a safe-haven asset that usually moves in the opposite direction of riskier assets, such as stocks.

"Brexit uncertainties, fresh concerns over lower U.S. economic growth, an overly cautious Federal Reserve and uncertainties on the China negotiations continue to encourage risk-averse investors to diversify their portfolios," said Walter Pehowich, executive vice-president at Dillon Gage Metals in Addison, Texas.

The Brexit saga continues this week after the House of Commons voted 329 to 302 on Monday in the U.K. to take control of the Brexit process from Prime Minister Theresa May.

Meanwhile, markets await further news on the Sino-U.S. trade front. High-level officials from China and the U.S. are scheduled to meet later this week in Beijing for a fresh round of trade talks.

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