Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold prices extended declines in Asian trading on Monday, weighed down by renewed optimism surrounding a U.S.–China trade truce that curbed demand for safe-haven assets, even as investors awaited an expected Federal Reserve rate cut later this week.
By 04:44 GMT, spot gold fell 1.3% to $4,060.80 per ounce, while U.S. gold futures declined 1.6% to $4,072.60, marking a continuation of last week’s retreat that snapped a nine-week winning streak fueled by record highs above $4,300 per ounce.
Trade Relief Eases Demand for Safe Havens
The yellow metal came under pressure after U.S. and Chinese negotiators reached a preliminary trade framework over the weekend during ASEAN meetings in Malaysia. The agreement is expected to be finalized at this week’s Trump–Xi summit in South Korea, extending the existing trade truce and potentially paving the way for a broader economic accord.
U.S. Treasury Secretary Scott Bessent said the framework removed the threat of 100% tariffs and China’s global export control measures, signaling that the risk of renewed escalation had largely receded.
The easing of geopolitical and trade tensions encouraged a shift into riskier assets, pulling investors away from gold and other traditional hedges.
Fed Rate Cut Expectations Provide Limited Support
Despite the decline, gold’s losses were limited by expectations of monetary easing. Markets are fully pricing in a 25-basis-point rate cut at the Federal Reserve’s October 29 policy meeting, following a softer-than-expected U.S. CPI report last week.
Lower interest rates generally support gold prices by reducing the opportunity cost of holding non-yielding assets and weakening the U.S. dollar, making bullion more attractive to global buyers.
However, analysts noted that the risk-on sentiment stemming from trade optimism and the Fed’s widely anticipated decision may cap near-term upside for the precious metal.
Broader Metals Mixed; Copper Hits New Record
Other precious and industrial metals also moved lower, reflecting the broader improvement in global risk sentiment.
- Silver futures dropped 1.4% to $47.91 per ounce,
- Platinum futures fell 0.9% to $1,587.10 per ounce,
- Benchmark copper futures on the London Metal Exchange surged over 1% to a record $11,078 per ton, while U.S. copper futures jumped 1.4% to $5.19 per pound.
Copper prices were supported by tight global supply, following the ongoing shutdown of Freeport’s Grasberg mine in Indonesia since early September, and optimism that a U.S.–China trade breakthrough could strengthen industrial demand.
Outlook
Gold traders are expected to tread cautiously ahead of the Federal Reserve’s policy announcement, balancing short-term profit-taking against longer-term support from rate cuts and structural demand from central banks.
