Gold Prices Plummet Ahead of Trump-Xi Summit
Gold prices declined on Monday, pressured by caution ahead of the upcoming U.S.-China talks and tensions in the Middle East. The precious metal fell 0.7% to $4,348.83 an ounce by 02:24 ET (06:24 GMT), while gold futures dropped 0.9% to $4,347.28/oz.
Last week's mildly positive performance was largely erased as the market digested the Federal Reserve's interest rate hike and its implications on the U.S. economy. The central bank's decision to raise rates by a quarter point marked its first hike in three years, with Fed Chair Kevin Warsh reiterating the bank's commitment to its 2% annual inflation target.
The market's focus this week is squarely on the upcoming summit between U.S. President Donald Trump and Chinese President Xi Jinping, set to take place in Washington. The meeting will likely discuss artificial intelligence and trade tariffs, with a tariff truce between the two countries set to expire in November.