19.08.201914:51:00UTC+00Gold Settles Notably Lower As Investors Seek Riskier Assets

Gold prices drifted lower on Monday as traders went for riskier assets after China announced interest rate reforms and on news that Germany is likely to run a fiscal deficit to counter a possible recession.

News that the Trump administration is once again delaying restrictions on Chinese tech giant Huawei contributed as well to the increased risk appetite in the market.

The dollar index rose to a two-week high, climbing to 98.33.

Gold futures for December ended down $12.00, or about 0.8%, at $1,511.60 an ounce.

On Friday, gold futures for December ended down $7.60, or about 0.5%, at $1,1523.60 an ounce.

Silver futures for September ended down $0.182, at $16.940 an ounce, while Copper futures for September settled at $2.6015 per pound, gaining $0.0065.

Stock markets were also supported by Trump's positive comments about the U.S. economy. Trump told reporters that he does not foresee an economic downturn even after last week's yield curve inversion, which is widely seen as an early recession indicator.

"I don't think we're having a recession," Trump said. "We're doing tremendously well. Our consumers are rich. I gave a tremendous tax cut and they're loaded up with money."

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.