Gold XAU/USD dropped more than 1% on Wednesday, trading at $3,391. This decline occurs just ahead of the Federal Reserve’s upcoming rate decision. Recent statements from both China and the United States confirmed that trade negotiations will commence this weekend, causing market shifts. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are scheduled to meet with the Chinese delegation, headed by Vice Premier He Lifeng, in Switzerland. Their goal is to resolve a tariff dispute that has posed significant threats to both economies. As rumors of potential progress circulate, market sentiment seems to lean towards optimism, impacting the performance of gold in the short term. Investors remain cautious and are closely monitoring these developmements.