2025.10.2813:15:11UTC+00Gold Prices Continue to Fall

Gold prices experienced a decline for the third consecutive session on Tuesday, dropping to $3,925 per ounce, marking the lowest level since early October. This decrease follows a record high observed the previous week. The fall can be attributed to traders cashing in profits and a reduction in safe-haven demand due to growing optimism surrounding a US–China trade agreement. Representatives from both nations announced that they had established a framework agreement on tariffs and other crucial matters during the weekend negotiations in Malaysia. This development sets the stage for Presidents Trump and Xi to finalize the agreement at their upcoming meeting on Thursday in South Korea. Despite this recent dip, gold has risen nearly 50% so far this year, buoyed by anticipated Federal Reserve interest rate cuts, persistent economic and geopolitical uncertainties, strong central bank purchases, and concerns over potential currency devaluation. Moving forward, the market is now focused on the Federal Reserve's policy decision on Wednesday. Investors broadly expect a 25 basis point rate cut, especially after the release of inflation data last week that was softer than anticipated.