Gold price drops below $4000 per ounce before Trump-Xi meeting

The price of gold fell below $4000 per ounce as progress in trade talks between the United States and China reduced demand for safe-haven assets. About this writes Reuters.

on October 26, US and Chinese negotiators outlined the framework of an agreement to suspend US tariff increases and postpone China's control over rare earth metal exports .

U.S. President Donald Trump and Chinese leader Xi Jinping are expected to meet on Thursday to continue discussions on the trade deal.

The spot price of gold fell by 2.9% to $3990.89 per ounce at 10:51 a.m. ET (14:13 GMT). US gold futures for December delivery fell 3.2% to $4005.20.

"A potential trade deal between the US and China suggests a somewhat lower need for safe-haven assets like gold," said David Meagher, director of metals trading at High Ridge Futures.

on October 20, gold rose to a record high of $4381.21 per ounce, but last week it fell by 3.2% after hints of easing trade tensions between the world's two largest economies.

In addition to technical selling, gold "continues to fall due to the easing of trade tensions, which pushed prices from $3800 to $4400 in the first three weeks of October," said CPM Group Managing Partner Jeffrey Christian.

Although most analysts and investors predict further growth in the price of the yellow metal, even to $5000 per ounce, some are skeptical about the sustainability of its recent strong growth.

Analysts at Capital Economics on Monday lowered their forecast for the gold price to $3500 per ounce by the end of 2026.

"The 25% jump in prices since August is much harder to justify than previous fluctuations during the gold price rally," Capital Economics said.

On Monday, the spot price of silver fell by 4.8% to $46.28 per ounce, platinum fell by 1.1% to $1587.92, and palladium lost 2.6% to $1391.34.

• on October 8, the price of gold exceeded $4000 per ounce for the first time in history . Its value has risen by more than 50% since the beginning of the year.
• On October 14, the price of silver set a new historical record, exceeding $53 per ounce at the London Stock Exchange.
• On October 21, gold and silver lost sharply in price. The fall is attributed to several factors: a stronger dollar, signals of a possible resumption of trade talks between the US and China, and a technically "overheated" market.