India, May 16 -- Gold prices fell sharply on Friday and headed for steep weekly losses as a 90-day U.S.-China trade truce improved investors' risk appetite and dented demand for safe-haven assets.
Spot gold fell nearly 1 percent to $3,209.01 per ounce in early European trading and was set for a weekly loss of nearly 4 percent. U.S. gold futures were down 0.4 percent at $3,212.99.
Last weekend, the U.S. and China agreed to a 90-day pause on their trade war in which the punitive, reciprocal tariffs were rolled back to 30 percent by the U.S. and 10 percent by China.
The deal along with some relief in geopolitical tensions led to some recovery in the greenback against major currencies and dented gold's appeal as a safe-haven asset. The dolla...