FX.co ★ Gold Slides Amid Signs of Easing US-China Trade Tensions

Gold prices experienced a 2% decline on Friday afternoon, settling at approximately $4,240 per ounce. This movement follows a retreat from its previous peak of $4,379.60, an all-time high reached earlier in the day. The downturn occurred as investor worries regarding intensifying US-China trade tensions began to dissipate. President Donald Trump commented that a proposed 100% tariff on Chinese imports would be "unsustainable," hinting at a possible de-escalation ahead of his scheduled meeting with Chinese President Xi Jinping. Nonetheless, Trump attributed the current deadlock to Beijing, pointing to stricter controls on rare earth exports. This year, gold has seen a more than 60% surge, driven by anticipation of US interest rate reductions, the ongoing government shutdown, geopolitical uncertainties, and robust demand for safe-haven assets. Further support for gold prices has been bolstered by central bank acquisitions and increased ETF inflows. Market analysts have largely factored in a 25-basis-point cut by the Federal Reserve this month, with another projected cut in December.