FX.co ★ Gold Gains, US-China Talks in Focus

Gold prices experienced a resurgence, reaching $4,260 per ounce on Monday following a significant drop last Friday. Investors are closely observing the forthcoming discussions between the United States and China. The meeting set for this week includes Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. President Donald Trump recently conveyed a positive outlook on these negotiations, suggesting that they might lead to a resolution, while also describing his previously proposed high tariffs as "unsustainable." In addition, the US government shutdown continues with no immediate resolution, contributing to the broader market's unpredictability. Financial markets are currently expecting a 25 basis point reduction by the Federal Reserve at their meetings in both October and December. This year, gold has already surged by over 60%, driven by escalating economic and geopolitical tensions, anticipated further rate cuts in the US, substantial central bank acquisitions, and increased ETF investments.