Gold Rebounds as US–China Talks Loom; Markets Eye Fed Cuts

Gold prices climbed to $4,260 per ounce on Monday, recovering sharply from Friday’s decline, as investors turned their attention to upcoming US–China negotiations.

US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to meet this week, following President Donald Trump’s recent remarks expressing optimism for a potential deal and calling his previously threatened high tariffs “unsustainable.”

Meanwhile, the US government shutdown has entered another week with no resolution in sight, adding to the prevailing market unease.

Traders are now pricing in a 25-basis-point rate cut at the Federal Reserve’s October meeting, with another expected in December.

Gold has already soared more than 60% this year, driven by escalating geopolitical tensions, growing expectations of further US rate cuts, robust central bank demand, and strong ETF inflows.