Gold prices stabilized at $4,250 per ounce on Monday following a notable drop on Friday. Investors are keenly observing upcoming discussions between US and Chinese officials in Malaysia, aimed at resolving trade tensions. Market sentiment is influenced by optimism regarding potential trade agreements, coupled with the backdrop of a prolonged US government shutdown and anticipated US Federal Reserve interest rate cuts.
- Gold prices steadied at $4,250 per ounce on Monday after a sharp decline on Friday.
- US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to meet this week in Malaysia.
- President Trump expressed optimism about reaching a trade agreement, deeming threatened tariffs “unsustainable.”
- Bullion has risen over 60% this year due to economic and geopolitical uncertainty, anticipated US rate cuts, central bank purchases, and ETF inflows.
- The US government shutdown continues with no immediate resolution in sight.
- Markets fully expect a 25bps rate cut at the Federal Reserve meeting later this month, with another anticipated in December.
The market shows a pause after a recent price decrease, underpinned by ongoing trade negotiations and domestic economic factors. Continued government instability and anticipated monetary policy easing further contribute to gold’s allure as a safe-haven asset.