Its prices of gold fell below $4,000 an ounce today (27.10.2025), extending losses from their worst decline in a decade, as progress in trade talks between USA and China reduced demand for safe havens.
Spot gold fell as much as 3.2 percent to below $3,990 an ounce after last week’s sharp rally came to an abrupt halt on concerns that the record rally had gone too far. Prices fell to $3,970.81 an ounce earlier in the session, the lowest level since Oct. 10. U.S. gold futures for December delivery were down 2.9 percent at $4,019.70.
Trade negotiators between China and the US have lined up a series of diplomatic successes for President Donald Trump and his counterpart Xi Jinping that will be announced at a summit this week. A trade deal between the world’s two largest economies could ease some of the economic risks and geopolitical tensions that have boosted the precious metal.
The surge that pushed gold to a record high of just over $4,380 an ounce last Monday has since been reversed, amid signs the metal was overpriced. So-called “devaluation trading” and bets on US Federal Reserve (Fed) interest rate cuts were the recent drivers of gains, attracting retail speculators who contributed to gold’s overbought market. Gold is still up more than 50% this year, supported by strong markets from central banks worldwide.
Spot silver fell 3.6% to $46.85 an ounce, platinum fell 0.4% to $1,592.03 and palladium lost 1.8% to $1,402.98.