2019.08.1907:19:00UTC+00Gold Prices Dip On Improved Risk Appetite

Gold prices dipped on Monday as U.S. Treasury yields bounced back and investors cheered reports of China interest rate reforms as well as German fiscal stimulus to counter a possible recession.

The dollar index hovered near a two-week high reached on August 16 as investors kept a close eye on Federal Reserve Chairman Jerome Powell's speech later this week for his commentary on interest rates.

Spot gold declined 0.85 percent to $1,509.67 per ounce while U.S. gold futures were down 0.9 percent at $1,510.25 an ounce.

Equities edged higher on improved risk appetite as the 10-year U.S. Treasury yield pulled away from a three-year trough hit last week and the People's Bank of China said it would use market-based reform methods to help lower real lending rates and prop up a slowing economy.

Elsewhere, media reports suggested that Germany's coalition government may be open to running a fiscal deficit to counter a possible recession.

Financial markets also welcomed U.S. President Trump's comments that he had discussed the impact of Washington's tariffs on Chinese goods with Apple chief Tim Cook.