Gold prices edged lower in Asian trading on Monday, as easing physical demand and profit-taking weighed on the market following an extended rally.
By 4:45 pm AEDT (5:45 am GMT), spot gold prices were down 0.1% to US$4,249.98 per ounce.
Gold traders took profits as Donald Trump proposed that ending the war in Ukraine could involve “cutting up” the Donbas region to place most of it under Russian control, after reportedly urging Volodymyr Zelenskyy during a White House meeting to concede large areas of territory.
On the macro front, China’s economy grew 4.8% year-on-year in the third quarter, marking the slowest expansion in a year but in line with expectations despite persistent weakness in the property sector.
Meanwhile, fixed-asset investment - which includes spending on real estate - unexpectedly contracted 0.5% in the first nine months of 2025, missing forecasts of a modest gain, as infrastructure and manufacturing activity cooled.
Gold finished last week higher, supported by solid physical demand during the festive period and steady inflows into exchange-traded funds.
Meanwhile, Washington has condemned Beijing’s decision to expand export controls on rare earth minerals, while China accused the U.S. of causing global panic over supply chain disruptions.
The growing friction has added another layer of uncertainty to global markets, bolstering the appeal of safe-haven assets such as gold.
