Gold prices tumbled more than 2% on Monday as investors shifted away from safe-haven assets following a temporary US-China tariff agreement, easing trade war fears.
Key Gold Market Movements
Spot gold fell 2.6% to $3,237.04 per ounce (as of 11:32 AM ET).
US gold futures dropped 3.1% to $3,241.70.
Gold had previously hit a record high of $3,500.05 last month amid escalating trade tensions.
Why Did Gold Prices Fall?
US-China Trade Truce: The US will reduce tariffs on Chinese goods from 145% to 30%, while China will lower duties on US imports from 125% to 10%. The deal will last 90 days.
Stronger US Dollar: The dollar surged to a one-month high, making gold more expensive for foreign buyers.
Stock Market Rally: Global equities rose as risk appetite improved, reducing demand for safe-haven assets like gold.
Analyst Insights: What’s Next for Gold?
Adrian Ash (BullionVault): “Gold’s rapid rise last month made it vulnerable to a pullback. If trade optimism fades, prices could rebound.”
Jim Wyckoff (Kitco Metals): “Gold bulls have lost their short-term advantage. Key resistance levels are now at $3,250 and $3,275.”
Upcoming Economic Data to Watch
US CPI Inflation (Tuesday) – Could influence Fed rate cut expectations.
PPI & Retail Sales (This Week) – Further clues on economic health.
Gold Market Outlook
While the US-China deal has pressured gold, any renewed trade tensions or weak economic data could reignite demand. Traders should monitor:
✅ Fed policy signals
✅ Dollar strength
✅ Geopolitical risks
