Gold extends decline as US-China trade talks progress
Gold prices fell, marking their first weekly drop since mid-August, as optimism over US-China trade talks reduced demand for safe-haven assets.
Bullion declined by as much as 1.4%, trading near $4,053 an ounce, after both countries indicated they were close to finalizing a broad deal during President Donald Trump’s Asia visit, News.Az reports, citing Bloomberg.
The potential agreement could ease economic and geopolitical risks that had previously supported gold’s rally.
The precious metal had surged to a record high above $4,380 last Monday but has since reversed some of its gains amid signs of overbought conditions. Despite the pullback, gold remains up 55% for the year, supported by central-bank purchases and the “debasement trade,” where investors turn to bullion to protect against budget deficits and currency risks.
This week features key central-bank announcements, with the Federal Reserve expected to cut rates by 25 basis points, while the European Central Bank and Bank of Japan are anticipated to hold rates steady. Lower borrowing costs generally favor gold, which pays no interest.
Nearly 1,000 professional gold traders, brokers, and refiners have gathered in Kyoto, Japan, for a London Bullion Market Association conference, marking record attendance. Discussions are expected to focus on a growing competition for bullion trading talent.
John Reade, market strategist at the World Gold Council, noted that central bank demand has softened, suggesting that a deeper correction might be healthy for the market, potentially bringing prices toward $3,500 an ounce while still remaining historically high.
As of 2:44 p.m. in Singapore, spot gold fell 0.7% to $4,080.47 an ounce following a 3.3% drop last week. Silver extended its recent decline, down 6.3%, while platinum and palladium edged higher. The Bloomberg Dollar Index slipped 0.1%.
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