Gold prices fell sharply on Tuesday, extending losses from the previous session as signs of progress in trade negotiations between Donald Trump and Chinese President Xi Jinping reduced investor demand for safe-haven assets.
Bullion dropped another 2% to around $3,900 (£2,900) an ounce, following a 3.2% decline on Monday, after negotiators from Washington and Beijing described discussions as having reached “a very positive framework” for an agreement.
The upbeat tone from the trade talks has accelerated gold’s retreat from record highs above $4,000 an ounce, reached last week after a years-long rally that began in 2022.
Gold had surged to an all-time peak of $4,380 an ounce last Monday, fuelled by global economic uncertainty and rising geopolitical tensions. However, easing fears of prolonged trade conflict have prompted investors to rotate back into risk assets, driving the latest sell-off in the precious metal.
