Gold prices back above $4,000 after plunging on easing safe-haven demand

Gold clawed back some losses after plunging below $4,000 an ounce on Monday as progress in the US-China trade talks sapped demand for safe-haven assets.

Gold has pulled back decisively from a record above $4,380 an ounce last Monday following a blistering rally. It’s still up more than 50% this year. (Bloomberg)

Gold prices rose as much as 0.9% on Tuesday, after tumbling 3.2% in the previous session as negotiators from Washington and Beijing said they had struck a series of agreements on issues including tariffs and export controls. Treasuries moved lower even as traders stuck to bets that the US Federal Reserve is set to loosen monetary policy this week, with the higher yields weighing on demand for non-interest bearing gold.