Gold (XAUUSD) at weekly low as market bets on good news
Gold (XAUUSD) has dropped to 3,275 USD as demand for safe-haven assets fades. The market is awaiting the announcement of a potential deal between China and the US. Find out more in our analysis for 12 May 2025.
XAUUSD forecast: key trading points
Gold (XAUUSD) prices decline amid expectations of progress in China-US trade talks
The market anticipates official statements on the issue as early as Monday
XAUUSD forecast for 12 May 2025: 3,258 and 3,223
Fundamental analysis
Gold (XAUUSD) prices fell to 3,275 USD on Monday, marking their lowest level in a week, a roughly 1% drop from Friday. The decline is driven by expectations, with the market awaiting an official announcement on progress in China-US trade negotiations early this week. Rumours suggest that productive developments are underway, and confirmation could arrive today.
Against this backdrop, investor appetite for safe-haven assets has diminished. Market participants are clearly pricing in a favourable outcome. Although little concrete information has been released, Chinese officials have indicated readiness for formal talks, and Washington has suggested that conditions for progress are in place. In any case, this will be known today.
Gold also came under pressure last week following comments from the US Federal Reserve. Speaking after the recent meeting, Fed Chairman Jerome Powell noted that there are no current plans for pre-emptive interest rate cuts.
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