Gold Falls 3% on Easing U.S.-China Trade Tensions, Fed Rate Cut Hopes

Core Insights - The article highlights a significant drop in gold prices due to improving U.S.-China trade relations, which has reduced demand for safe-haven assets [1][2] - Gold futures fell by 3.2% to $4,002.90 per troy ounce, while spot gold decreased by 0.3% to $4,114.13 per ounce [1] - Despite the recent decline, gold prices have increased over 50% this year, driven by expectations of an interest rate cut by the Federal Reserve [2] Market Reactions - The optimism surrounding U.S.-China trade talks has led to a pullback in gold prices, which had previously surged [2] - Analysts suggest that if U.S.-China relations continue to improve, further short-term pullbacks in gold prices may occur [2]