A sense of calm set in on Monday as equities rose and gold prices fell with geopolitical risk and macro concerns easing.
The gold price was trading at $3,347 at the time of writing, notably lower than the highs around here $3,400 a couple of trading sessions ago.
“Gold fell sharply in yesterday’s trading session, losing the $3,400/oz level as the broader macro risk backdrop gradually faded. The easing of geopolitical and trade tensions has led to a clear decline in safe-haven demand, stripping gold of part of its previous upward momentum,” said Linh Tran, Market Analyst at XS.com.
“On the trade front, the U.S. and China agreed to extend their tariff pause for another 90 days, a deal announced just hours before the previous deadline expired. President Donald Trump signed an executive order extending this “trade truce” until November 10, immediately removing the risk of an escalation in tensions. This positive development helped spark a “risk-on” sentiment across multiple asset classes, from equities to corporate bonds.”
Tran continued to explain that discussions between Trump and Putin this week were key to the immeaditae outlook for the price of gold.
“In the geopolitical arena, President Trump confirmed that he and Russian President Vladimir Putin will discuss “land swaps” related to Ukraine’s future borders at the upcoming summit in Alaska this Friday,” Tran said.
“While the outcome of these talks is difficult to predict, the prospect of direct dialogue between the two leaders is seen as a step toward de-escalation.”