Futures higher amid U.S.-China trade talks progress - what’s moving markets
Investing.com-- Gold prices slid in Asian trading on Monday, extending losses from last week as easing U.S.-China trade tensions eroded bullion’s safe-haven demand, while markets awaited an expected Federal Reserve rate cut later this week.
Spot gold slipped 1.3% to $4,060.80 per ounce by 00:44 ET (04:44 GMT), while U.S. Gold Futures declined 1.6% to $4,072.60.
The metal snapped a nine-week winning streak last week as traders took profits following record highs above $4,300/oz driven by geopolitical concerns and expectations of monetary easing.
Gold tumbles on easing trade jitters, overshadowing Fed cut optimism
The decline comes as U.S. and Chinese negotiators reached a preliminary trade framework over the weekend on the sidelines of ASEAN meetings in Malaysia.
The framework is expected to be finalized when U.S. President Donald Trump and Chinese President Xi Jinping meet later this week in South Korea to extend the trade truce and potentially lay the groundwork for a broader accord.
“The threat of the 100% tariff has gone away, as has the threat of the Chinese initiating a worldwide export control regime,” said U.S. Treasury official Scott Bessent, suggesting that the risk of renewed trade escalation had eased.
These developments boosted appetite for risk assets, weighing on gold’s safe-haven appeal.
Still, losses in gold were capped by expectations that the Federal Reserve would cut interest rates at its Oct. 29 policy meeting.
A softer-than-expected U.S. consumer price index (CPI) report last week cemented bets for a 25-basis-point rate cut, with investors now looking for guidance on the outlook for additional easing through year-end.
Lower interest rates tend to support gold by reducing the opportunity cost of holding non-yielding assets and putting downward pressure on the U.S. dollar, making bullion cheaper for holders of other currencies.
Precious metals dip; Copper hits record high amid tight supply
Other precious metals also traded lower on Monday, pressured by the broader risk-on mood.
Silver Futures dropped 1.4% to $47.91 per ounce, while Platinum Futures fell 0.9% to $1,587.10/oz.
Benchmark Copper Futures on the London Metal Exchange jumped over 1% to hit a record high of $11,078.00 a ton, while U.S. Copper Futures surged 1.4% to $5.19 a pound.
Copper prices have been supported by the shutdown of Freeport’s Grasberg mine in Indonesia since early September. Expectations of a U.S.-China trade truce also boosted the red metal.