Gold Prices Drop Up to 3.2% to $3,220 After US-China Agree 90-Day Tariff Reduction, Impacting GLD and PHYS

Gold prices declined sharply following a new trade agreement between the United States and China to reduce tariffs on each other's goods for a 90-day period. Spot gold prices dropped as much as 3.2%, reaching around $3,220 an ounce, with declines extending to about 3% in subsequent trading sessions. The tariff reduction deal between the two largest economies has led to a sell-off in gold futures and spot prices, reflecting market expectations of reduced trade tensions and lower demand for gold as a safe-haven asset. This price movement also impacted gold-related exchange-traded funds, including GLD and PHYS.