Gold (XAU/USD) is facing a steep decline of over 2.5%, trading towards 3,233 USD currently. This drop follows the announcement of significant tariff reductions between the US and China. China has agreed to lower tariffs on US imports to 10% from an initial 125%, while the US will reduce tariffs on Chinese goods to 30% from 145%, effective for 90 days. The easing of trade tensions has diminished fears of a prolonged trade war and encouraged equity market optimism. Investors are left wondering how these developments will reshape the future of gold as a safe-haven asset.