(Fixes typo in headline ) * Federal Reserve's rate decision anticipated this week * Capital Economic lowers end-2026 gold price forecast * Trump and Xi to discuss trade accord on Thursday By Anjana Anil and Pablo Sinha Oct 27 (Reuters) – Gold prices fell below $4,000 per ounce on Monday as signs of a thaw in U.S-China trade tensions reduced some of bullion's safe-haven appeal, while market participants awaited the Federal Reserve's interest rate decision this week. Spot gold was down 2.6% at $4,005.11 per ounce at 10:13 a.m. ET (1413 GMT), after briefly falling below the $4,000 per ounce mark earlier in the session. U.S. gold futures for December delivery were down 2.9% at $4,019.00. In addition to technical selling, gold is "seeing a further decline because of an unwinding of trade tensions that had taken prices from $3,800 to $4,400 over the course of the first three weeks of October," said CPM Group managing partner Jeffrey Christian. Gold, a traditional safe haven, climbed to a record high of $4,381.21/oz on October 20, but retreated 3.2% last week following hints of easing trade tensions between the world's two largest economies. Negotiators from the U.S. and China on Sunday outlined the framework for a deal to pause steeper American tariffs and Chinese rare earths export controls. U.S. President Donald Trump and China's Xi Jinping are expected to meet on Thursday to further discuss a trade accord. Meanwhile, the market sees a 97% chance of a quarter basis point reduction at the Fed' meeting on Wednesday. Gold, being a non-yielding asset, typically performs well in a low-interest rate environment. While most analysts and investors see further highs for the yellow metal, even bringing $5,000/oz into view, some are sceptical about the sustainability of its recent huge rise. Capital Economics analysts on Monday lowered their gold price forecast to $3,500/oz for end-2026. Spot silver fell 3.8% to $46.75 per ounce, platinum eased 1.1% to $1,588.86, and palladium 1.3% to $1,409.47. (Reporting by Anjana Anil and Pablo Sinha in Bengaluru. Editing by Mark Potter)
(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)
