Gold Prices Fall as Dollar Strengthens and US-China Trade Tensions Ease
Global gold prices declined on Monday, weighed down by a stronger US dollar and signs of easing trade tensions between the United States and China, while investors await key central bank meetings later this week.
Spot gold fell 0.8% to $4,078.30 per ounce, retreating from last week’s gains. The dollar climbed to its highest level in more than two weeks against the yen, making gold more expensive for holders of other currencies.
According to US officials, senior economic policymakers from Washington and Beijing have outlined a framework for a potential trade agreement that Presidents Donald Trump and Xi Jinping may decide on later this week. The deal would temporarily halt higher US tariffs on Chinese goods and ease China’s export controls on rare earth minerals — a move expected to calm recent trade tensions.
Meanwhile, markets are widely expecting the Federal Reserve to cut interest rates by a quarter percentage point during its meeting on Wednesday. Investors will closely monitor Chair Jerome Powell’s remarks for guidance on the future path of monetary policy, with expectations of another rate cut in December.
Gold — a non-yielding asset — tends to perform well in a low-interest-rate environment, but the dollar’s current strength has limited its appeal.
Among other precious metals, silver slipped 0.3% to $24.44 per ounce, platinum rose 0.5% to $1,012.95, and palladium gained 0.2% to $1,431.94 per ounce.
Analysts expect gold prices to remain under pressure in the short term as risk appetite improves and optimism grows over a potential breakthrough in US-China trade relations.
