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Gold and Silver Prices Drop Amid US-China Trade Optimism

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Gold and Silver Prices Tumble Amid US-China Trade Optimism
Key Points:
  • Spot gold fell around 1.15โ€“1.4% and silver about 2%.
  • Drop linked to optimism for a US-China trade deal.
  • Safe-haven demand for metals declined amid renewed optimism.

Gold prices decreased by 1.4% to $4,053 per ounce, and silver prices dropped by 1.59% to $47.83 per ounce on October 27, 2025. The declines reflect optimism for a US-China trade deal, reducing demand as safe-haven assets.

Renewed optimism over a US-China trade deal has sent international spot gold and silver prices tumbling.

Gold prices have dropped by approximately 1.15 to 1.4%, reaching as low as $4,053 per ounce. Donald Trumpโ€™s Asia visit, highlighting possible trade accords, has lessened investor anxiety, prompting a drop in safe-haven assets such as gold and silver. Silver also fell about 1.59 to 2%, with negative sentiment on risk-off flows impacting its market.

โ€œThe renewed optimism over a potential US-China trade deal is cooling safe-haven flows into gold and silver.โ€ โ€” Kyle Rodda, Senior Analyst, Capital.com

The significant outflow from gold-backed ETFs marks the largest single-day decline in five months, pointing to reduced investor interest. The US Federal Reserveโ€™s anticipated rate cut is expected to support this trend, potentially influencing further drops in metal demand.

Central banks, including the ECB and BOJ, are expected to adopt further rate pauses this week. This monetary policy shift underscores a general move away from safe-haven assets, in favor of more optimistic market plays. Synthetic/metals-backed tokens such as PAXG and XAUT offer potential market hedges, though direct impacts remain marginal as broader market correlations persist.

Potential regulatory and market outcomes include further volatility pending central bank decisions. Historical trends caution that favorable trade outcomes could continue muting risk-off behaviors, while financial institutions may adjust portfolios away from safe-haven assets.

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