Gold prices continue decline amid US-China talks, Fed anticipation
ISTANBUL
Gold prices extended their downward trend on Tuesday, as easing tensions in US-China trade talks reduced demand, while investors awaited the Federal Reserve's interest rate decision on Wednesday.
After hitting record highs in October, spot gold fell 0.45 percent to hover around $3,998.58 per ounce, marking its lowest level since Oct. 10.
In Turkey's free market, gram gold traded at 5,365 Turkish Lira ($127,88) , while in Istanbul's Grand Bazaar, it sold for 5,725 Lira ($136,46).Quarter gold fetched 9,340 Lira ($222,63).
Spot silver was priced at $46.69 per ounce.
Expectations of a 25 basis point rate cut by the Fed could provide upward support for gold, but optimism over US-China trade developments has curbed demand for the metal as a hedge.
Recent talks in Malaysia between US and Chinese officials yielded progress on tariffs, with a framework agreement reached ahead of an expected meeting between President Donald Trump and Chinese President Xi Jinping.
While a potential deal might temporarily ease pressures, analysts anticipate gold's rebound due to sustained central bank purchases and inflows into gold-backed exchange-traded funds.
Major banks have revised forecasts amid the volatility, with HSBC predicting gold could reach $5,000 per ounce by June 2026, driven by geopolitical risks and economic uncertainties.
