Gold Moves Sharply Lower Amid Easing U.S.-China Trade Tensions

(RTTNews) - Gold prices moved sharply lower during trading on Monday, as easing concerns about trade tensions between the U.S. and China reduced the precious metal's safe haven appeal.

After slumping by 1.7 percent in the previous week, gold for October delivery plunged by $116.50 or 2.8 percent to $4,001.90 an ounce.

With the steep drop on the day, the price of gold tumbled to its lowest closing level in over two weeks.

Gold came under pressure amid optimism about a potential U.S.-China trade deal ahead of a highly anticipated meeting between President Donald Trump and his Chinese counterpart Xi Jinping later this week.

Treasury Secretary Scott Bessent met with Chinese officials in Malaysia over the weekend and said he believes the talks have resulted in a "very successful framework" for Trump and Xi to discuss on Thursday.

Bessent also indicated he expects China to resume its purchases of U.S. soybeans and delay the export controls on rare earths that contributed to the recent increase in tensions.

On his way to Japan, Trump also expressed optimism about reaching a trade deal with China after signing separate trade and mineral agreements with his Malaysian and Cambodian counterparts.