Overview
- Spot gold briefly dropped below $4,000 on Monday as signals of progress in US–China negotiations reduced safe-haven demand and strengthened the case for profit-taking.
- Prices recovered above $4,000 on Tuesday, with a weaker dollar and expectations of a 25-basis-point Federal Reserve cut providing support.
- The metal has retreated from last week’s record just above $4,380 but remains up more than 50% for the year.
- Citigroup lowered its three‑month target to $3,800 as World Gold Council commentary pointed to softer central‑bank demand and ETF outflows amplified volatility at the LBMA conference.
- Domestic markets reflected the swing, with steep declines reported in India and Pakistan, while traders look to the Fed decision and the planned Trump–Xi meeting for the next directional cue.