Gold Prices Slump 2.5%

SAFE-HAVEN GOLD FELL more than 2% on Monday as risk sentiment crept in following the announcement of a temporary deal between the United States and China to reduce tariffs.

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Spot gold was down 2.5% at $3,239.54 an ounce, as of 0941 ET (13:41 GMT). Bullion, considered a hedge against economic and geopolitical turmoil, hit a record high of $3,500.05 last month amid increased tariff uncertainty. US gold futures shed 3% to $3,244.20.

"The de-escalation of tensions between China and the US, with tariffs being reduced for 90 days, is reducing the demand for safe haven assets like gold," said UBS analyst Giovanni Staunovo. "Near-term prices are likely to stay volatile. But higher tariffs are still weighing on economic growth and (will) likely force central banks to cut interest rates later this year. Also central banks might use this price setback to add exposure."

Meanwhile, the dollar index jumped more than 1% against its rivals, making gold more expensive for other currency holders.