Gold prices decreased during Asian trading on Monday, retracting from record highs as signs of declining tensions between the U.S. and China reduced the metal’s appeal as a safe-haven asset.

Gold Retreats Amid Mixed Trade Signals

As of 01:54 ET (05:54 GMT):

• Spot gold fell 0.8% to reach $3,292.75 per ounce.

• Gold futures, set to expire in June, ticked up slightly, gaining 0.2% to $3,303.77 per ounce.

This retraction follows a notable surge to all-time highs for gold, driven by trade uncertainties and a weaker dollar.

U.S.-China Trade Talks: Confusion Clouds the Market

Conflicting reports continue to generate market uncertainty:

• Reports emerged that China had exempted specific U.S. imports from its 125% retaliatory tariffs.

• President Donald Trump claimed last week that tariff negotiations with China were active and that he had spoken with President Xi Jinping.

• However, U.S. Treasury Secretary Scott Bessent contradicted these claims, stating he was unaware of any ongoing trade talks and uncertain if Trump and Xi had communicated recently.

• China officially dismissed assertions of new negotiations.

This back-and-forth has rendered markets cautious, yet overall, the safe-haven demand for gold has eased with the potential for thawing relations.

Key Takeaways for Gold Investors

• Gold remains vulnerable to shifts in geopolitical sentiment.
• The safe-haven rally might continue if talks stall or tensions escalate again.
• Traders should watch upcoming economic data and central bank commentary for additional insights.

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Final Thoughts

Although gold’s recent retreat reflects optimism for a U.S.-China trade resolution, ongoing uncertainty suggests volatility may prevail. Investors should prepare for potential price swings as markets react to every headline related to trade discussions.