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Gold Extends Decline After First Weekly Loss as Trade-Deal Hopes Cool Haven Demand

Prices hover in the low $4,000s with attention turning to this week’s Federal Reserve decision.

Overview

  • Spot gold slipped toward $4,060–$4,080 on Monday after a 3.3% weekly drop, the first decline in about ten weeks.
  • Last week’s reversal followed a record peak above $4,380 and the biggest one‑day fall since 2013, with heavy outflows from gold‑backed ETFs amplifying selling.
  • Signs of progress on a potential USChina trade agreement reduced safe‑haven interest, while a steadier dollar pressured bullion and silver extended losses.
  • A softer US inflation print reinforced expectations for further Fed easing, and markets are watching policy signals from the Fed and ECB as volatility stays elevated.
  • Dealers from Asia to the US reported buy‑the‑dip interest, and major banks such as Goldman Sachs maintained a multi‑year bullish outlook supported by central‑bank demand.