Gold prices fall over 1% due to optimism in US-China trade talks and reduced geopolitical risks

From Investing.com: 2025-05-12 04:24:00

Gold prices fell over 1% on Monday to below $3,280 as optimism surrounding US-China trade talks increased, leading to a decline in demand for safe-haven assets like gold. The India-Pakistan ceasefire agreement held steady, reducing demand further. Economic calendar is light today, traders should monitor US trade tariffs. XAU/USD key levels to watch are $3,195 support and $3,360 resistance.

The euro rose by 0.19% on Friday on hopes of a trade deal. The USD stabilized after the Fed indicated no further rate cuts, with focus now on consumer price data for signs of tariff-driven inflation. EUR/USD declined slightly today, with low volatility expected. Technically, bearish pressure remains as long as the price stays below 1.13000.

The yen hit a four-week high but fell by 0.25% on Monday as officials from the US and China reported progress in trade negotiations. USD/JPY moved sideways, with upcoming US and Japan economic releases potentially impacting the pair. Key levels to watch for USD/JPY are 145.000 support and 146.200 resistance.



Read more at Investing.com: Gold Retreats on Easing Geopolitical Risks and Trade Talk Optimism