Gold prices fell in early trading on Monday, extending Friday’s decline as renewed optimism over progress in US-China trade negotiations reduced demand for safe-haven assets.
Spot gold was down about 1.68% to $4,042.74 per ounce in early Asian and European sessions, after briefly touching around $4,020.
The decline follows two days of talks in Malaysia between senior negotiators from both countries, which produced a preliminary framework covering export controls, fentanyl, agricultural purchases, and shipping levies.
The progress has lifted hopes of a breakthrough when US President Donald Trump and Chinese President Xi Jinping meet in South Korea later this week to finalize a deal. The easing geopolitical tension has, however, reduced the appeal of traditional safe-haven assets such as gold.
Meanwhile, investors are turning their attention to a series of major central bank meetings this week. The US Federal Reserve is widely expected to cut interest rates by 25 basis points, following weaker inflation data, while the European Central Bank and Bank of Japan are both likely to keep their policy rates steady.
Despite Monday’s decline, gold remains one of the best-performing assets of 2025. Prices are up about 5.5% over the past month and 47% year-on-year, supported by sustained central bank buying, ETF inflows, and ongoing concerns about global economic uncertainty.
Gold reached an all-time high of $4,381.58 per ounce earlier in October, underscoring the strength of investor appetite even amid short-term pullbacks.
As the new trading week begins, analysts say gold’s near-term direction will depend on whether risk sentiment continues to improve or if traders seek safety again ahead of this week’s central bank decisions.
