Investing.com-- Gold prices fell in Asian trade on Wednesday as the announcement of formal trade talks between the U.S. and China boosted risk appetite and sapped haven flows.

At 08:45 ET (12:45 GMT), spot gold slid 1.2% to $3,388.40 an ounce, while gold futures for June fell 0.8% to $3,396.74/oz.

The yellow metal had gained some ground this week, coming back in sight of record highs as a lack of clarity on the U.S.-China trade war drove up haven demand.

Gold slips on U.S.-China trade talks

Gold’s decline came amid a run-up in risk-driven assets, after U.S. and China confirmed that high-level officials will meet for trade talks in Switzerland this week.

While traders were still skeptical over just what would come out of the upcoming talks, the meeting still represents some progress towards an eventual deescalation in the ongoing U.S.-China trade war.

Both the U.S. and China have also displayed little interest in deescalating, after they slapped trade tariffs of over 100% on each other in April. Recent economic prints from both countries showed that trade-related uncertainty was beginning to weigh on growth.

Metal prices under pressure ahead of Fed

Other metal prices also retreated on Wednesday, coming under pressure from a stronger dollar. Platinum futures fell 0.5% to $988.35/oz, while silver futures fell 0.9% to $33.088/oz.

Among industrial metals, benchmark copper futures on the London Metal Exchange fell 0.8% to $9,467.55 a ton, while U.S. copper futures fell 2.1% to $4.6765 a pound.

Copper futures benefited from some increased bids as markets positioned for the conclusion of a Fed meeting later in the day. The central bank is widely expected to keep rates unchanged , amid heightened uncertainty over trade tariffs and economic growth.

Focus will also be on comments from Fed Chair Jerome Powell, who is expected to signal few near-term changes in rates despite increasing calls from President Trump for rate cuts.

(Ambar Warrick contributed to this article.)