FX.co ★ Gold Rebounds After Sharp Fall

On Tuesday, gold prices surged past the $4,000 mark per ounce, recovering from a significant 3.2% drop experienced in the prior session. This decline had been triggered by positive developments in the US-China trade discussions. Diplomatic representatives from the United States and China announced that a framework agreement concerning tariffs and other critical matters had been reached during weekend negotiations in Malaysia. This progress sets the stage for the forthcoming meeting between President Trump and President Xi in South Korea, where they are expected to finalize the agreement. Meanwhile, investors shifted their focus to the US Federal Reserve's forthcoming policy decision. It is broadly anticipated that the Fed will implement a 25 basis points rate cut at its next meeting, especially after the release of a softer-than-expected inflation report.