FX.co ★ Gold Drops Amid Progress on US-China Trade Talks

Gold prices fell below $4,100 per ounce on Monday, continuing the decline seen on Friday. This movement is attributed to progress in trade discussions between the US and China, which has reduced the demand for safe-haven assets like gold. Over two days of negotiations in Malaysia, senior negotiators from the two nations reached a preliminary agreement on several important issues, including export controls, the trafficking of fentanyl, agricultural trade, and shipping tariffs. This consensus lays the groundwork for a potential deal to be finalized by President Donald Trump and President Xi Jinping during their upcoming meeting in South Korea later this week. Additionally, market attention is also directed towards significant central bank decisions due this week. It is widely anticipated that the Federal Reserve will reduce interest rates by 25 basis points, spurred by US inflation data that was softer than expected. In contrast, the European Central Bank and the Bank of Japan are expected to maintain their current policy rates.