Gold Falls Below $4K Amid Progress on US-China Trade Talks

2025-10-27 01:16 By Judith Sib-at 1 min. read

Gold prices fell more than 2.5% toward $4,000 per ounce on Monday, extending Friday’s losses and reaching their lowest level in about two weeks, as progress in US-China trade negotiations reduced demand for safe-haven assets.

After two days of extensive talks in Malaysia, top officials from both sides reached a preliminary agreement on export controls, fentanyl, agricultural purchases, and shipping levies.

This now sets the stage for President Trump and President Xi to finalize a deal when they meet in South Korea later this week.

Meanwhile, investors are also looking ahead to major central bank decisions this week, with the Fed widely expected to cut rates by 25bps following softer-than-expected CPI data, while the ECB and the Bank of Japan are seen likely to hold their policy rates steady.

Despite the decline, bullion is up 54% so far this year, supported by economic and geopolitical uncertainty, US rate-cut expectations, strong central bank buying, and sustained ETF inflows.



News Stream
Gold Nears Three-Week High
Gold edged up to $4,730 an ounce on Monday, recovering from early losses to reach its highest level in nearly three weeks, as investors awaited progress in US-Iran negotiations. President Donald Trump swiftly rejected Iran’s response to a peace proposal, calling it “totally unacceptable” and raising the risk of renewed conflict, while weekend strikes across the Middle East further threatened a fragile ceasefire established in early April. With Washington and Tehran still struggling to reach a diplomatic resolution, the Strait of Hormuz remains effectively blocked, keeping oil prices elevated and stoking inflation concerns. Investors have scaled back expectations for two US rate cuts this year, with forecasts now divided between limited easing and no cuts at all in 2026. Markets also turned their attention to Tuesday’s US CPI data and Trump’s two-day visit to China this week, where he is set to meet President Xi Jinping to discuss Iran, Taiwan, AI, and nuclear weapons.
2026-05-11
Gold Slips as Trump Rejects Iran Response
Gold prices fell below $4,700 an ounce on Monday, giving back part of last week’s gains after President Donald Trump rejected Iran’s response to his peace proposal as “TOTALLY UNACCEPTABLE,” sustaining concerns over inflationary pressures. Reports indicated that Tehran had offered to move part of its highly enriched uranium stockpile to a third country, while refusing to dismantle its nuclear facilities. Meanwhile, renewed attacks across the Middle East over the weekend threatened to undermine a fragile ceasefire that took effect in early April. The Strait of Hormuz also remains effectively closed as Washington and Tehran continue to struggle toward a diplomatic resolution to the conflict, keeping energy prices elevated and intensifying inflation concerns. That strengthened expectations that central banks may raise interest rates further to contain price pressures, a development that tends to weigh on precious metals.
2026-05-10
Gold Prices Surge Amid US-Iran Ceasefire Optimism
Gold prices climbed above $4,720 per ounce on Friday, reaching their highest level since April 22 and heading for a weekly gain of over 2%, as optimism surrounding a potential US-Iran peace agreement eased concerns that persistent inflation could keep interest rates elevated for longer. Despite a recent exchange of fire between the US and Iran, the most significant test of their month-long ceasefire, Iran stated that the situation had stabilized, while US President Donald Trump confirmed the ceasefire remained "in effect." Investors also processed the latest US jobs report, which revealed the economy added 115,000 jobs last month, surpassing expectations of 62,000 and indicating continued strength in the labor market. Since the war began in late February, gold has dropped more than 10%, pressured by rising oil prices that fueled inflation worries and clouded the outlook for interest rates.
2026-05-08