Lagos — Gold prices experienced a sharp decline on Monday as positive trade developments reduced demand for safe-haven assets.
US-China trade tensions showed signs of easing following a major breakthrough in talks held in Switzerland.
The two countries agreed to temporarily suspend tariffs. The 90-day pause provided further relief to global markets.
In Eastern Europe, the prospect of negotiations eased geopolitical concerns, further weakening gold’s safe-haven appeal.
Additional optimism came from the Middle East and South Asia, where hopes for a ceasefire between Israel and Hamas, as well as a de-escalation of tensions between India and Pakistan lifted investor sentiment.
Looking ahead, investor focus will turn to US inflation data later this week as gold could remain exposed to changes in US monetary policy. Decreasing bets on interest rate cuts could weigh on the asset.
*Market analysis on behalf of Moza Albalushi, Licensed Market Analyst
