Geneva: The Gold price (XAU/USD) attracted sellers, reaching near $3,275 during the early Asian session on Monday, as it was pressured by a stronger US Dollar (USD). Optimism surrounding US-China trade talks in Geneva, Switzerland, over the weekend contributed to the decline of the precious metal.

According to Azeri-Press News Agency, the US and China reported ‘substantial progress’ after two days of discussions in Switzerland aimed at easing trade tensions. China’s Vice Premier He Lifeng referred to the trade talks with US officials as ‘an important first step’ toward stabilizing bilateral trade relations. US Treasury Secretary Scott Bessent echoed this sentiment, noting the ‘substantial progress’ made during the negotiations. Despite this, traders remain focused on the details of the US-China trade talks, which the US plans to disclose on Monday.

The evolving measures from these two leading global economies might weaken the demand for Gold as a safe-haven asset. However, trade-related uncertainties could potentially limit the losses of the yellow metal. David Meger, director of metals trading at High Ridge Futures, commented, “Obviously, the overall continued uncertainty in regards to tariffs remains probably the most significant underpinning behind gold.”

Moreover, persistent geopolitical risks could influence Gold prices, even as military activities between India and Pakistan have subsided following a ceasefire. Both nations have claimed victory after reaching an agreement over the weekend, averting further escalation between the two nuclear-armed neighbors.