Gold prices declined as investor sentiment shifted towards riskier assets amid ongoing trade negotiations between the United States and China. This improved risk appetite reduced demand for traditional safe-haven assets like gold.
The easing of tensions between the two economic superpowers has led to optimism in global markets, prompting investors to reallocate funds from gold to equities and other risk-driven assets. This shift has resulted in a downward pressure on gold prices.
Market participants are closely monitoring the progress of the US-China trade talks, as any significant developments could further influence investor behavior and asset allocations. Additionally, upcoming economic data releases are expected to provide further insights into the global economic outlook, potentially impacting gold demand.
