Gold Sinks as US-China Trade Progress Spurs Flight Out of Havens

Gold fell as demand for haven assets tanked after the US and China agreed to lower tariffs on each other’s products for 90 days, signaling a major breakthrough in trade negotiations that were flagged last week.

Bullion’s losses accelerated on Monday after the announcement, with prices falling as much as 3.2% to around $3,220 an ounce. The dollar extended gains — making gold more expensive for most buyers — following a joint statement from both nations that said the combined 145% US levies on most Chinese imports will be reduced to 30%, while the 125% Chinese duties on US goods will drop to 10%.