The post Gold retreats sharply from two-week top amid US-China trade talks optimism appeared on BitcoinEthereumNews.com.

Gold price struggles to capitalize on its weekly gains registered over the past two days. The optimism over US-China trade talks is seen weighing on the safe-haven commodity. Investors now look to the crucial FOMC policy decision for a fresh directional impetus. Gold price (XAU/USD) attracts heavy selling during the Asian session on Wednesday and snaps a two-day winning streak to a two-week high, around the $3,434-3,435 region touched the previous day. The global risk sentiment gets a strong boost following the announcement of the US-China trade talks in Switzerland this week. This, in turn, undermines the safe-haven bullion, which, along with a modest US Dollar (USD) uptick, contributes to the intraday downfall. Meanwhile, the US-China trade negotiations are likely to be complex, and reaching a comprehensive trade deal is expected to be time-consuming. This could keep a lid on the market optimism, which, along with persistent geopolitical tensions, could support the Gold price. Moreover, the USD bulls might opt to wait for the outcomes of a two-day FOMC meeting. This further warrants caution before placing aggressive bearish bets around the non-yielding Gold price. Daily Digest Market Movers: Gold price is pressured by receding safe-haven demand amid US-China trade talks optimism US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are set to meet their Chinese counterparts in Switzerland on Saturday to discuss trade and economic issues. This marks the first direct talks since the US imposed tariffs on China and a step toward resolving a trade war between the world’s two largest economies. Meanwhile, US President Donald Trump said on Tuesday that he and top administration officials will review potential trade deals over the next two weeks to decide which ones to accept. This, however, counters Trump’s earlier statement that his administration could announce trade deals with some…

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Filed under: News - @ May 7, 2025 2:23 am