Gold prices tumbled more than 3% on Monday, sliding below $4,000 per ounce, as optimism over progress in US-China trade talks dampened demand for safe-haven assets, according to ING’s Head of FX Strategy Chris Turner.
The decline extends last week’s correction, coming just days after gold hit a record high above $4,380/oz. Turner noted that a potential trade deal between Washington and Beijing could ease geopolitical tensions that have fueled the metal’s rally throughout 2025.
The price drop also coincided with renewed outflows from gold-backed ETFs, with last Friday marking the largest single-day outflow since May 2025.
Despite the pullback, gold remains up more than 50% year-to-date, supported by robust ETF inflows and central bank purchases as part of diversification strategies. Turner added that the recent dip could even present buying opportunities for central banks looking to expand their reserves.