Gold prices slipped on Monday as a stronger U.S. dollar and renewed optimism about a potential trade deal between the United States and China weakened investor demand for safe-haven assets. The metal, often seen as a hedge during economic uncertainty, lost ground as traders shifted their attention toward equities and other riskier investments.
Spot gold fell by around 0.7% to $4,082.77 per ounce, while U.S. gold futures for December delivery dropped nearly 1%. Analysts said the gains in the dollar made gold more expensive for buyers holding other currencies, further pressuring the market. Investors are now closely watching the Federal Reserve’s upcoming policy meeting for clues on interest rate changes that could impact future gold prices.
Market optimism over progress in U.S.-China trade talks has also contributed to the decline. Reports suggest both countries are moving closer to a limited trade agreement, easing global economic tensions and boosting investor confidence. This shift in sentiment has reduced gold’s appeal as a safe-haven investment in the short term.
Despite the current dip, experts believe that long-term factors such as geopolitical risks, inflation concerns, and potential shifts in global trade policy could continue to influence gold demand in the coming months.
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