2019.06.2707:15:00UTC+00Gold Extends Losses Ahead Of Trump-Xi Meeting

Gold prices fell slightly on Thursday to extend losses from the previous session as optimism prevailed ahead of the highly anticipated meeting between President Donald Trump and Chinese leader Xi Jinping at the G-20 summit in Japan this week.

Spot gold slid 0.25 percent to $1,405.75 per ounce, after having fallen over 1 percent in the previous session as Fed officials played down expectations of aggressive rate cuts. U.S. gold futures were down half a percent at $1,408.45 an ounce.

Trump voiced optimism over the possibility of a trade agreement with China but said he is still considering imposing "very substantial" tariffs on all Chinese imports if the two countries were unable to reach a deal during the meeting.

Separately, U.S. Treasury Secretary Steven Mnuchin told CNBC the U.S. and China had nearly completed a deal before talks broke down last month.

However, he didn't shed any light on the sticking points to achieving the final 10 percent and refused to speculate on whether a deal would be completed.

The South China Morning Post reported, citing sources that the U.S. and China have agreed to a tentative truce in their trade dispute.