Market Confidence Rises as Trade Tensions Ease

Gold prices experienced a significant drop, falling over 1% on Monday. This decline comes as the easing of trade relations between the US and China boosts market confidence, reducing the demand for gold as a safe-haven asset.

Recent Developments in US-China Trade Relations

US President Donald Trump hinted at a possible relaxation of his stringent trade policies towards China last week, mentioning ongoing discussions about tariffs. In a related move, China has exempted certain US products from its hefty 125% tariffs. However, Beijing has denied claims of any current trade negotiations with the US.

Precious Metals Market Update

At 5:32 am ET, gold was down by 1.05%, trading at $3,277.97 per ounce. Silver also saw a decrease, dropping 0.29% to $32.98 per ounce. On the brighter side, platinum and palladium prices rose, with platinum increasing by 0.61% to $983.44 per ounce and palladium climbing 0.72% to $937.01 per ounce shortly after.