Gold eases as risk appetite improves on U.S. stimulus hopes, Trump discharge from hospital

Gold prices declined, retreating from a near-2 week high hit in the previous session, as risk sentiment improved on Trump's health update and prospects of a U.S. stimulus package.

Spot gold traded 0.1 percent down at $1,911.32 per ounce by 0725 GMT, having hit a high of $1918.69 on Monday, its highest since September 22. U.S. gold futures were trading 0.2 percent lower at $1,916.60.

Investor risk appetite improved after U.S. President Donald Trump left the hospital and returned to the White House following treatment for COVID-19, though White House physician warned he may not have fully recovered.

Asian shares surged to a 2-week high on Trump's health update and prospects for a fresh U.S. stimulus package. Meanwhile, the dollar index fell to a 2-week trough against its rival currencies.       

U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke on the coronavirus economic relief and were preparing to talk again Tuesday. However, the renewed efforts in Congress to reach an agreement on relief funds for the economy have been complicated by the spread of the coronavirus.

On Monday Chicago Federal Reserve Bank President Charles Evans said that he expects U.S. inflation to reach 2 percent by 2023 and wants to push it to 2.5 percent to offset years of below-target price rises.            

The greenback against a basket of currencies traded flat at 93.47, having touched a low of 93.34 earlier, its lowest since September 21. The U.S. Treasury yields dropped, with the benchmark 10-year note yield trading at 0.772 percent and the 30-year yield at 1.585 percent.

Markets now await the U.S. import and export figures, balance of trade, JOLTs Job Openings and Fed Chair Powell Speech for signs of recovery in the economy and further insights over the monetary policy outlook.