03.11.202501:49:56UTC+00Gold Extends Decline

Gold prices dipped below $4,000 per ounce on Monday, continuing the downward trend from the previous session. This decline is primarily attributed to the diminishing expectations of further interest rate cuts by the US Federal Reserve and a decrease in safe-haven demand following the recent trade agreement between the US and China. Last week, the Federal Reserve implemented a rate cut as anticipated; however, Chair Jerome Powell indicated that this could be the last reduction for the year, citing the scarcity of economic data amid the ongoing US government shutdown. Currently, market projections indicate about a 70% likelihood of a rate cut in December, a decrease from the over 90% probability prior to Powell’s remarks. In terms of trade, US President Donald Trump and Chinese President Xi Jinping, during last week's summit, agreed to prolong the tariff truce, relax export restrictions, and reduce other trade barriers. At the same time, China has withdrawn a long-standing tax incentive on gold sales, potentially increasing consumer prices and reducing demand in one of the largest bullion markets globally.