Gold Prices Experience Significant Drop

In a surprising turn of events, gold prices fell by more than 1% on Monday. This decline is attributed to the easing tensions in the US-China trade relations, which has boosted market confidence and reduced the demand for safe-haven assets.

Recent Developments in US-China Trade Relations

US President Donald Trump hinted at a possible softening of his hardline trade policy towards China last week, suggesting that tariff discussions are underway. In response, China waived certain US products from its hefty 125% tariffs. However, Beijing has denied claims of ongoing trade negotiations with the US.

Market Reactions

By 5:32 am ET, gold was selling for $3,277.97 per ounce, marking a 1.05% drop. Silver also saw a decline, albeit smaller, at 0.29%, selling for $32.98 per ounce. On the brighter side, platinum and palladium prices increased by 0.61% and 0.72%, respectively.