Gold Prices Retreat as Fed Signals Caution and US-China Trade Talks Stall
Global gold prices have taken a sharp dip after months of strong gains, as investors respond to signals from the Federal Reserve and limited progress in US-China trade talks. Spot gold recently traded around $3,997.79 per ounce, while December gold futures on COMEX saw their largest single-day drop in over a decade.
Federal Reserve Chair Jerome Powell’s recent remarks indicated that interest rate cuts are not guaranteed in the near term. This hawkish stance strengthened the US dollar, making gold more expensive for holders of other currencies and reducing investor demand for the non-yielding metal.
Market participants also digested the outcomes of the US-China summit in Busan, which produced only minor concessions, including a small reduction in US tariffs and delayed Chinese export restrictions. Analysts said the talks did not resolve core trade issues, adding to uncertainty and limiting gold’s upside potential.
Experts predict that gold may face further downward pressure, with potential tests of the $3,750 per ounce level. While long-term demand for gold remains, the current environment signals a consolidation phase as markets await clearer guidance on monetary policy and international trade developments.
