The price of gold fell due to trade negotiations between the US and China
Kyiv • UNN
Positive trade negotiations between the US and China have reduced market fears. Investors have moved from gold to riskier investments, leading to a price drop.
Gold fell in price on Monday, amid positive trade talks between the US and China, which reduced market fears, forcing investors to switch from safe-haven assets to riskier investments, UNN writes with reference to Reuters.
Details
Spot gold fell 1.4% to $3277.34 per ounce at 04:32 GMT (06:32 Kyiv time).
"The dollar index rose, amid the fact that the Trump administration praised the progress in trade negotiations with China after negotiations over the weekend in Switzerland, which affected gold prices," said Jigar Trivedi, senior commodity analyst at Reliance Securities.
The US and China concluded high-stakes trade talks on a positive note on Sunday, with US officials touting an "agreement" to reduce the US trade deficit, while Chinese officials said they had reached an "important consensus."
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Chinese Vice Premier He Lifeng said a joint statement would be published in Geneva on Monday.
The US and China imposed mutual duties on each other last month, provoking a trade war that fueled fears of a global recession.
Most of Trump's current and former advisers interviewed by Reuters said the US would stick with higher tariffs once the dust settled from President Donald Trump's trade talks.
Gold, traditionally seen as a hedge against economic and political uncertainty, thrives in low interest rate environments.
On Friday, Cleveland Federal Reserve President Beth Hammack said the Fed needs more time to see how the economy responds to Trump's tariffs and other measures before determining the right response.
Traders are also awaiting the release of the US Consumer Price Index on Tuesday for new signals on the trajectory of the Fed's monetary policy.
"In the near term, gold may continue to fall as the dollar may rise, and amid a decrease in geopolitical risk, demand for safe-haven assets may also fall, so the yellow metal may fall to $3,200 per ounce in the near term," Trivedi added.
Spot silver rose 0.4% to $32.84 per ounce, platinum rose 0.7% to $1001.90, and palladium strengthened 0.6% to $981.20.