“Gold fell amid optimism about US-China talksThe spot price of gold fell by 1.3% amid signs of trade negotiations between the US and China. Investors await the decision of the US Federal Reserve System on policy.”, — write: unn.ua
DetailsSpot gold fell 1.3% to $3,383.88 an ounce at 04:32 GMT (07:32 Kyiv time).
US gold futures fell about 1% to $3,391.80.
“Gold seems to be retreating amid a broad-based ‘risk’ move in the markets… this is a pro-cyclical configuration that may reflect optimism amid signs that the US and China have started real trade negotiations,” said Ilya Spivak, head of global macroeconomics at Tastylive.
US Treasury Secretary Scott Bessent and US chief trade negotiator Jamison Greer will meet with China’s top economic official He Lifeng in Switzerland this weekend for talks.
China and the US to hold first trade talks since the start of the tariff standoff07.05.25, 08:19 • 1614 views
Both countries imposed reciprocal tariffs last month, sparking a trade war that has fueled fears of a global recession.
On Tuesday, US President Donald Trump said he and senior administration officials would review potential trade deals over the next two weeks to decide which ones to accept.
Market focus will also be on the Federal Open Market Committee (FOMC) meeting later in the day, at which the US central bank is expected to keep interest rates unchanged.
Spivak added that the FOMC will remain vague to maintain as much flexibility as possible while trying to understand what this trade war will mean for growth and inflation.
Traders expect an 80 basis point rate cut this year, starting in July.
Remarks by US Federal Reserve Chairman Jerome Powell are also expected for clues as to the possible timing of future rate cuts.
Gold, traditionally seen as a hedge against economic and political uncertainty, thrives in a low interest rate environment.
On the geopolitical front, India said it attacked Pakistan after a deadly attack on tourists in Kashmir last month. Pakistan reported eight casualties and said it was responding to India’s strikes.
India and Pakistan: Escalation of conflict, missile strikes and downed aircraft 07.05.25, 09:13 • 952 views
Spot silver fell 0.7% to $33.01 an ounce, platinum fell 0.1% to $983.60, and palladium lost 0.7% to $967.64.