Geneva: The Gold price (XAU/USD) fell below $3,300, reaching approximately $3,275 during the early Asian session on Monday. This decline is attributed to a stronger US Dollar, as reported by APA-Economics, citing fxstreet.com.

According to Azeri-Press News Agency, optimism surrounding US-China trade talks held in Geneva, Switzerland, over the weekend has contributed to the decrease in gold prices. The two-day discussions aimed at easing the trade war between the two economic giants resulted in what was described as ‘substantial progress’. China’s Vice Premier He Lifeng noted that the talks with US officials marked ‘an important first step’ towards stabilizing bilateral trade relations. Furthermore, US Treasury Secretary Scott Bessent confirmed that significant progress was made, although traders are awaiting further details from the US, expected to be shared on Monday.

The developments between the US and China could potentially reduce the demand for gold as a safe-haven asset. However, uncertainties related to trade might still offer some support to the gold market. David Meger, director of metals trading at High Ridge Futures, remarked, “Obviously, the overall continued uncertainty in regards to tariffs remains probably the most significant underpinning behind gold.”

Moreover, ongoing geopolitical risks continue to influence gold prices. Although military tensions between India and Pakistan have lessened following a ceasefire, the situation remains a factor in the market. Both nations claimed victory after the ceasefire, which averted a potential conflict between the two nuclear powers.