Gold declines to $4,000 amid sell-off. Are China-US trade deal talks to blame?

Core Insights - Gold prices have fallen to around $4,000 per ounce as investors shift away from the asset due to positive developments in US-China trade talks [1] - The recent decline halted a significant year-to-date rally in gold, marking the largest daily drop in over a decade [2] Market Trends - Historical analysis indicates that while some price reversals in gold have marked peaks, others occurred within longer-term uptrends, suggesting potential for recovery [3] - Wall Street analysts remain bullish on gold, with expectations for continued interest in the asset going into next year [3] Future Projections - UBS Global Wealth Management forecasts potential gains for gold, predicting a rise to $4,700 per ounce if adverse macroeconomic and political conditions arise [4] - Bank of America maintains a "long gold" recommendation, projecting a peak of $6,000 per ounce by mid-2026 [4] - Goldman Sachs has revised its forecast for gold to $4,900 per troy ounce by the end of next year, up from a previous estimate of $4,300 [5]