Published On 27/10/2025
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Last update: 13:20 (Mecca time)
Gold prices fell today, Monday, affected by:
- Dollar rise.
- Signs of a decline in trade tension between the United States and China.
- Traders await major central bank meetings later this week for clues on monetary policy.
In the latest transactions at the time of writing this report, gold fell in spot transactions by 1.74% to $4,040.52 per ounce.
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US gold futures for next December delivery fell 2.09% to $4,051.20 an ounce.
Dollar rise
The dollar rose to its highest levels in more than two weeks against the yen during the day, making gold more expensive for holders of other currencies.
Yesterday, Sunday, senior Chinese and American economic officials laid out a framework for a trade agreement for US President Donald Trump and Chinese President Xi Jinping to take a decision on it later this week.
“This potential trade agreement between the United States and China came really unexpectedly and brought a positive surprise to the markets in general,” said Kyle Rodda, an analyst at Capital.com. “But on the other hand, these developments were negative for gold.”
Rodda added, “The factors motivating gold’s significant rise have now receded in the market and sentiment has stabilized. The reason that could continue to support gold is the possibility of continued monetary easing in the future. If the situation continues like this, the upward trend for gold should continue.”
The Federal Reserve (US central bank) is widely expected to cut interest rates by a quarter of a percentage point at its meeting on Wednesday, a speculation supported by the lower-than-expected inflation report on Friday.
Stay tuned for monetary policy decisions
Other than this expected cut, investors will await any comments indicating the future path of interest rates from Federal Reserve Chairman Jerome Powell.
Gold, a non-yielding asset, tends to rise in a low interest rate environment.
As for other precious metals, their performance was as follows:
- Silver fell in spot transactions by 1.56% to $47.85 per ounce.
- Platinum fell 1.32% to $1,588.34.
- Palladium fell 0.71% to $1,422.75.