Gold prices are falling amid anticipation of the outcome of trade talks between China and the United States.
Gold prices witnessed a decline during today's trading session on Tuesday, June 10, amid market anticipation for the outcomes of the ongoing negotiations between the United States and China, which could impact global trade trends.
Data showed a 0.8% decrease in gold futures to reach $3328.4 per ounce, while spot delivery prices dropped by 0.5% to $3310 per ounce.
The countries continued the second round of high-level talks today, addressing contentious issues including tariffs and restrictions on rare earth metal exports.
In this regard, Tim Water, chief market analyst at K.C.M. Trade, commented in a note cited by Reuters: "With these key trade talks ongoing between the U.S. and China, gold is trading cautiously until we see any progress."
President Donald Trump, on the other hand, expressed optimism, stating that his administration is "doing well" in the negotiations, with positive reports circulating about the discussions.
This follows last month's agreement to suspend mutual tariffs, leading to partial stability in financial markets.
Investors are now looking forward to the release of the Consumer Price Index data scheduled for tomorrow, Wednesday, which may provide insights into the Federal Reserve's monetary policy.
Tim Water warned that: "If the Consumer Price Index rises slightly, it would be an expected outcome, but a significant jump in this data could trigger some alarms for investors, and any resulting flight to safety could support the price of gold."
