Gold Drops As US-China Trade Progress Reduces Safe-Haven Demand
Global gold prices extended their decline as progress in trade talks between the United States and China reduced investor appetite for safe-haven assets. Spot gold slipped by around 0.7% to near US $4,083 an ounce in early Singapore trade and posted a weekly loss of 3.3%, its first since mid-August.
Trade Talks And Market Impact
Signs of a possible breakthrough in US-China trade negotiations have lifted risk sentiment. Investors are shifting funds away from bullion into equities and other riskier assets, weakening demand for gold. The precious metal had recently surged past US $4,380 an ounce in August before the pullback began.
Technical And Fundamental Drivers
Market experts say the decline reflects cooling geopolitical pressure, but gold remains fundamentally supported by central bank buying and persistent inflation risks. Some traders believe the correction is a healthy technical reset after a strong rally that pushed prices to record highs earlier this year.
Outlook
Analysts expect gold’s path to hinge on global central bank decisions and the outcome of US-China talks. A lasting trade agreement could put further pressure on prices, while renewed geopolitical tensions may quickly restore its safe-haven appeal.
