Gold prices extended their slide in Asian trading on Tuesday, slipping further below the key $4,000 per ounce mark amid signs of easing U.S.-China trade tensions that weakened bullion’s safe-haven appeal ahead of a Federal Reserve policy meeting.
Spot gold was down 0.4% at $3,963.6 an ounce by 01:58 ET (05:58 GMT), while U.S. Gold Futures fell 1% to $3,981.59/oz. The yellow metal had already slumped over 3% on Monday to a two-week low, extending a nearly 10% decline from last week’s record high of $4,381.29/oz.
The pullback followed reports that Washington and Beijing negotiators reached a preliminary trade framework during weekend talks in Kuala Lumpur. The deal aims to avert new tariffs and could lead to a breakthrough when U.S. President Donald Trump meets Chinese President Xi Jinping later this week.
Analysts at ING noted that despite the correction, gold remains up more than 50% this year, supported by ETF inflows and central bank buying. They suggested the dip may even encourage some central banks to increase holdings.
Investors are now awaiting the Fed’s rate decision, expected Wednesday, with markets pricing in a 25 basis-point cut. However, the limited scope for further easing may cap near-term gains for gold.
Meanwhile, other metals also traded lower. Silver Futures fell 0.6% to $46.49/oz, Platinum declined 1.6% to $1,556.60/oz, and LME Copper Futures slipped 0.6% to $10,948.95/ton, while U.S. Copper Futures dropped 0.8% to $5.12/pound.
LME copper briefly hit a record high of $11,052/ton on Monday, but analysts said growing optimism over trade talks and easing supply disruptions may soon brighten copper’s outlook.
