28.10.2025 10:25
Gold prices fell to $3,965, the lowest level in 18 days, due to reduced safe-haven demand following positive signals from U.S.-China trade talks. While the weak performance of the dollar provides limited support for gold, experts indicate that the direction will be determined by the Fed's interest rate decision.
The most severe pullback in gold prices has occurred in recent weeks. In global markets, the ounce of gold fell to as low as $3,965, testing its lowest level in 18 days. Positive signals from trade talks between the US and China have reduced investors' demand for safe havens, causing gold prices to dip below the critical support level of $3,985.
PULLBACK IN GRAM GOLD AS WELL
Gram gold, which showed a brief recovery signal in the morning hours, saw a 0.2% decline in the first transactions of the day, reaching 5,346 lira, and then stabilized around 5,358 lira. Analysts state that the decline in ounce gold is also putting pressure on gram prices. KCM Trade Chief Market Analyst Tim Waterer said, "Investors who have been waiting for a long time have started to buy at current levels. The recent weakness of the dollar is also providing some support to gold."
DOLLAR WEAK, SUPPORT FOR GOLD IS LIMITED
The dollar index fell by 0.1% against rival currencies, making gold more attractive for investors using other currencies. However, experts believe that the weakness of the dollar only slightly alleviates the selling pressure on gold.
US-CHINA TALKS SHAPING THE MARKET
Over the weekend, the agreement reached by senior economic officials from the US and China on the framework of a trade deal increased risk appetite in the markets. US President Donald Trump stated during his Asia tour, "An agreement can be reached with China." Waterer noted that this development could have a two-fold effect on the gold market, saying, "If a positive outcome arises from the Trump and Xi meeting, it could create headwinds for gold in the short term. However, expectations for a Fed interest rate cut could limit this effect."
EYES ON THE FED MEETING
The US Federal Reserve (Fed) is widely expected to cut interest rates in its meeting that will conclude tomorrow. Investors are focused on the statements of Fed Chairman Jerome Powell. It is also expected that the European Central Bank (ECB) and the Bank of Japan (BoJ) will keep their interest rates unchanged within the same week.
LOSSES IN OTHER METALS AS WELL
The decline in gold has also affected other precious metals. Spot silver decreased by 0.3% to $46.74, platinum fell by 1.2% to $1,571.85, and palladium dropped by 0.8% to $1,391.15. Experts suggest that if ounce gold permanently falls below $4,000, selling pressure could deepen, but the Fed's interest rate decision has the potential to change this trend in the short term.