Gold prices fell on Monday as the dollar rallied against a basket of major rivals amid an improving risk appetite, while investors shunned the precious metal as a safe haven following the US-China trade deal.
The US and China announced a massive cut in reciprocal tariffs for 90 days amid efforts to contain trade tensions and reach a resolution.
According to the temporary agreement, the US will cut tariffs from 145% to 30%, including a 20% tariff related to fentanyl, while China will cut tariffs from 125% to 10%.
US Treasury Secretary Scott Bessent hailed the “very productive talks” with Chinese counterparts, and praised the place of negotiations besides the serene Geneva lake.
Bessent asserted the tariff pause will carry on for 90 days with both sides cutting tariffs by 115%.
Bessent said cutting tariffs below 10% wouldn’t be feasible, but the level specified by President Trump in early April at 34% would be a “ceiling”.
He said a partial removal of fentanyl tariffs is possible if China cooperates in finding a solution to the crisis.
Otherwise, the dollar index rose 1.5%% as of 18:52 GMT to 101.8, with a session-high at 101.9, and a low at 100.5.
On trading, gold spot prices rose 3.5% as of 18:53 GMT to $3228.3 an ounce.
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