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

Gold experienced a decline of over 1%, falling below $3,280 on Monday and reaching its lowest point in a week. This drop was influenced by a surge of optimism regarding US-China trade discussions, which reduced the demand for safe-haven assets. Over the weekend, officials from both nations wrapped up their talks on a positive note, with China announcing upcoming formal negotiations and the US emphasizing strides made toward reaching a deal. Additionally, Treasury Secretary Scott Bessent indicated he would deliver a comprehensive briefing on Monday to provide further insights. On the geopolitical stage, the ceasefire between India and Pakistan held steady into Sunday night, despite early allegations of breaches following the agreement. Meanwhile, the non-yielding asset faced additional downward pressure after the Federal Reserve raised concerns last week about increasing inflation and labor market risks. Fed Chair Powell made it clear that a preemptive interest rate cut in anticipation of tariff-related issues was not being considered.