Gold prices declined below the key $3,300 level during early Asian trading on Monday, pressured by a stronger US dollar and positive developments in US-China trade negotiations.
Over the weekend, trade officials from the US and China concluded two days of talks in Geneva, reporting “substantial progress” toward easing trade tensions. China’s Vice Premier He Lifeng called the discussions “an important first step” in stabilizing bilateral trade relations, while US Treasury Secretary Scott Bessent echoed similar optimism. Detailed outcomes from the talks are expected to be shared by US officials later on Monday.
The easing of trade-related tensions between the world’s two largest economies has reduced demand for safe-haven assets like gold. However, lingering uncertainties around tariffs continue to provide some support. “The overall continued uncertainty regarding tariffs remains the most significant factor supporting gold,” noted David Meger, Director of Metals Trading at High Ridge Futures.
Geopolitical risks also remain a key consideration. While recent reports indicate a ceasefire between India and Pakistan, with both nations claiming victory, the situation continues to pose a potential risk that could influence safe-haven demand for gold.
Outlook
While easing trade tensions may keep gold prices under pressure, ongoing geopolitical uncertainties and future developments in trade negotiations will be closely watched by investors for further market direction.
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