Gold prices extended their corrective decline on Monday, retreating from last week’s all-time high of US$3,057.59 per ounce as market sentiment shifted towards riskier assets.
By 4:05 pm AEDT (5:05 am GMT) spot gold prices were down by 0.2% to US3,019.26 per ounce.
The precious metal remains under pressure as optimism over U.S. trade policies and potential progress in Ukraine peace negotiations dampens its safe-haven appeal.
Meanwhile, market participants reacted to reports suggesting the White House may scale back its planned tariff measures set for April 2.
According to the Wall Street Journal, the Trump administration is expected to narrow its list of tariffs, opting for industry-specific exemptions while imposing reciprocal tariffs on nations with significant trade ties to the U.S.
Additionally, China's efforts to boost domestic consumption have reinforced market confidence, further weighing on gold.
Hopes for a potential resolution to the Russia-Ukraine conflict also contribute to the risk-on sentiment following a meeting between U.S. and Ukrainian officials in Saudi Arabia on Sunday.
Ukrainian Defence Minister Rustem Umerov described the talks as "productive and focused", fueling speculation about further diplomatic progress.
Investors now turn their attention to Monday’s discussions between Russian and U.S. delegates regarding a possible Ukraine peace deal.
