Gold prices (XAU/USD) are facing challenges as fresh sellers emerge during the Asian session on Wednesday. Optimism surrounding the de-escalation of trade tensions between the US and China, the world’s two largest economies, impacts gold’s ability to capitalize on previous gains.

The positive sentiment in equity markets could further hinder gold’s rally, as investors shift their focus to riskier assets. As market dynamics evolve, staying informed will be crucial for gold investors.

Trading gold effectively relies on understanding the intertwining factors of global economic health and geopolitical developments.