Optimism over US-China trade talks spurs fall in gold prices

Gold prices fell by 1.4% on Monday, driven by positive sentiment surrounding trade talks between the US and China. As geopolitical tensions eased, investors moved away from safe-haven assets in favor of riskier ones, Reuters reports.

After meeting in Switzerland over the weekend, American officials announced that an agreement had been reached to address the trade deficit, while Chinese representatives stressed an "important consensus" built. A joint statement is set to be voiced in Geneva on Monday.

Last month, the two countries imposed tit-for-tat duties, thus escalating trade tensions and raising concerns about a potential recession in the US, the publication noted. Despite the current optimism, several former and current advisors to Donald Trump warned in a Reuters interview that America could face increased tariff burdens in the future.

Investors are now keeping a close eye on Tuesday's release of the US Consumer Price Index (CPI), as the data could influence the Federal Reserve's monetary stance and subsequently gold prices, Reuters concludes.