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.



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