- The price of gold dips to approximately $3,335 in the initial hours of Tuesday’s Asian trading session.
- Increased positive sentiment regarding a potential trade agreement between the US and China is weighing on the price of gold.
- Speculation surrounding potential Federal Reserve interest rate reductions may help to curb the decline in the XAU/USD pair.
The price of gold (XAU/USD) is experiencing a slight decrease, trading near $3,335 in the early hours of Tuesday’s Asian market. This decline in the precious metal’s value is occurring amidst a slight recovery in the US Dollar (USD) and a perceived de-escalation of trade tensions between the United States and China.
China announced exemptions for certain US imports from its 125% tariffs on Friday, fueling optimism that the trade dispute between the US and China may be approaching a resolution. However, China promptly refuted US President Donald Trump’s claim that negotiations between the two countries were in progress.
US Treasury Secretary Scott Bessent stated on Monday that the US government is in communication with China, but emphasized that the onus is on Beijing to initiate steps to reduce trade tensions with the US, citing the existing trade imbalance between the two countries. The diminished concerns surrounding trade tensions between the world’s two largest economies are lessening the demand for conventional safe-haven investments such as gold. Furthermore, a strengthening US Dollar is creating additional challenges for the precious metal.
