Gold prices fell on Monday as trade tensions between the US and China eased, causing investors to turn to more risky assets, reducing the attractiveness of gold. The stronger US dollar also puts more pressure on the precious metal price.
At 1-25 p.m. (Vietnam time), spot gold prices fell 0.8%, to $3,292.11/ounce. Gold previously hit a record $3,500.05 an ounce on April 22. US gold futures increased slightly by 0.1%, to $3,302.3/ounce.
"The financial market and risk assets are currently feeling more relieved about the tariff issue compared to the stressful first week of April" - Tim Waterer, chief market analyst at KCM Trade commented.
"Last week's statements from the White House have fueled hopes for a potential US-China trade deal, reducing safe-haven demand for gold," the expert said.
US President Donald Trump said he is holding talks with China on the tariff issue. Last week, the Trump administration also signaled readiness to cool down the trade war with the world's second largest economy - something that has raised concerns about a global recession.
China waived tariffs on some US imports on Friday, but also denied Trump's claim that the two sides were negotiating.
However, US Treasury Secretary Scott Bessent did not confirm that statement from Mr. Trump on Sunday.
Gold is considered a safe haven in the context of economic and political instability and often benefits from a low interest rate environment.
Meanwhile, many delegates attending the Spring Conference of the International Monetary Fund (IMF) and the World Bank (WB) said that the Trump administration has not yet agreed on the requirements for trading partners subject to high tariffs.
This week, the market is waiting for important data such as the US employment report on Tuesday, the personal consumption expenditure index on Wednesday and the non-farm payrolls report on Friday - data that could reveal more about the Fed's interest rate policy.
Spot silver prices fell 0.9% to 32.8 USD/ounce; platinum moved sideways at 971.29 USD/ounce; palladium fell 0.7%, to 942.15 USD/ounce.
