Gold prices slipped in Asian trading on Monday, extending losses from last week as easing U.S.-China trade tensions curbed demand for the precious metal. Investors also kept a close eye on the upcoming Federal Reserve policy meeting, where a rate cut is widely expected.

Spot gold fell 1.3% to $4,060.80 per ounce , while U.S. gold futures dropped 1.6% to $4,072.60. The yellow metal recently ended a nine-week winning streak, with traders taking profits after record highs above $4,300/oz that were fueled by geopolitical uncertainty and rate-cut expectations.

Easing trade jitters weigh on bullion

The latest pullback in gold came after U.S. and Chinese officials reached a preliminary trade framework over the weekend during ASEAN meetings in Malaysia. The agreement, which is expected to be finalized when President Donald Trump and President Xi Jinping meet later this week in South Korea, aims to extend the existing truce and set the stage for a broader trade accord.

“The threat of the 100% tariff has gone away, as has the threat of the Chinese initiating a worldwide export control regime,” said U.S. Treasury official Scott Bessent, signaling reduced risk of renewed trade escalation.

The easing tensions boosted risk appetite across global markets, weighing on gold’s safe-haven demand.

Fed rate cut in focus

Despite the dip, gold’s downside remained limited by expectations that the Federal Reserve will cut interest rates at its upcoming October 29 policy meeting.

A softer-than-expected U.S. CPI report last week bolstered confidence in a 25-basis-point rate reduction. Markets will be watching for clues on whether policymakers plan additional cuts later this year.

Lower interest rates generally support gold by reducing the opportunity cost of holding non-yielding assets and putting pressure on the U.S. dollar, which makes bullion more attractive to foreign buyers.

Other metals mixed

Elsewhere in precious metals, silver futures slipped 1.4% to $47.91 per ounce, while platinum edged down 0.9% to $1,587.10/oz.

Meanwhile, copper prices surged, with LME benchmark futures jumping over 1% to a record $11,078 per ton, and U.S. copper futures climbing 1.4% to $5.19 per pound. The red metal continues to be supported by the ongoing shutdown of Freeport’s Grasberg mine in Indonesia and optimism over an improving U.S.-China trade outlook.