Gold Slips Below $4,000 as Safe-Haven Appeal Falls After Trade Optimism

New Delhi, October 28: Gold prices fell below their key milestone mark of $4,000 per ounce today, continuing their downward momentum after rising to record highs. The fall in gold prices is being driven by lower safe haven demand, as investors are getting more hopeful about the US-China trade agreement.

Gold Prices Ease To $3,985.74 Per Ounce After Reaching Record $4,400 Level

As of 9:45 AM, Spot gold fell 0.48%, or 19.08 points, to $3,985.74 per ounce. U.S. gold futures for December delivery also fell 0.46% to $4,001.11. The decline follows weeks of gains, where gold prices rose from around $3,800 to $4,400 during the first three weeks of October.

However, after reaching a record high, gold is now witnessing a continued selloff. The selloff is being driven by investors believing that the US and China will come to a trade agreement by the end of this week. This comes at a time when US President Donald Trump and China’s Xi Jinping are expected to meet this Thursday to discuss a trade agreement between the two countries.

Investors Await the US Federal Reserve’s Policy Decision

Apart from the potential trade agreement, investors are also awaiting the U.S. Federal Reserve’s upcoming policy decision, where it is expected that the Fed will reduce the interest rate by a quarter basis point. If that happens, gold prices may see a further downturn.

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