27-Oct-2025      14:25

Gold retreats ahead of major central bank decisions

Gold prices fell over 1.5% to around $4065 per ounce in Asian trade on Monday, extending last week's sharp drop as progress in US-China trade talks reduced safe-haven demand. The decline also came after investors booked profits following gold's strongest weekly gain in five years. Hopes of easing tensions in the Russia-Ukraine and Israel-Hamas conflicts further trimmed risk aversion, though geopolitical risks remain in the background. Markets now turn to this week's central bank decisions, with the Federal Reserve expected to cut rates by 25 bps, while the ECB and BOJ are likely to hold steady. Despite the pullback, gold is still up about 55% this year, supported by uncertainty, rate-cut expectations, and solid central bank buying.

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