FX.co ★ Gold Slips on US-China Trade Talks

Gold prices fell beneath the $3,380 per ounce mark on Wednesday, interrupting a two-day upward trend. This decline occurred amidst reports that U.S. and Chinese officials are set to convene for discussions this week, diminishing the appeal of safe-haven assets. This meeting is a significant stride towards negotiating agreements between Washington and Beijing to alleviate the ongoing trade conflict. The tensions had escalated last month when President Trump increased tariffs on Chinese imports to 145%, while reducing them for many other U.S. trading partners. In retaliation, China enacted substantial tariffs of its own. Concurrently, investors are keenly observing the Federal Reserve’s policy announcement later today, along with Fed Chair Powell's commentary, to gather insights on potential shifts in interest rates. The Federal Reserve is broadly anticipated to maintain rates at their current level, notwithstanding rising political pressure to adopt a more accommodative monetary policy stance.