Gold prices fell further on Wednesday (Oct 22), weighed down by signs of easing US-China trade tensions and as investors took advantage of bullion's recent record rally to take profits while awaiting US inflation data due later this week.

Spot gold was down 0.4% at $4,109.19 per ounce, as of 0236 GMT. Bullion fell more than 5% on Tuesday (Oct 21) in its steepest fall since August 2020.

US gold futures for December delivery climbed 0.4% to $4,124.10 per ounce.

"Simmering of trade tensions between the US and China was the snowflake which caused the avalanche and reversal of gold's momentum trade," said StoneX senior analyst Matt Simpson.

"This is simply a technical repositioning on a market that clearly needed a pullback after an extended move above $4,000. I suspect we've seen the worst

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