WASHINGTON (dpa-AFX) - The price of gold moved sharply lower during trading on Monday, largely offsetting the strong upward move seen last week.
After surging $103.50 or 3.2 percent to $3,335.40 an ounce last week, gold for May delivery plunged $115.40 or 3.5 percent to $3,220 an ounce.
The steep drop by the price of gold came after the U.S. and China reached a trade deal that drastically reduces the massive tariffs on each other's goods, reducing the precious metal's safe haven appeal.
The White House said the agreement calls for the U.S. and China to each lower tariffs by 115 percent while retaining an additional 10 percent tariff.
The U.S. will retain tariffs imposed in response to the fentanyl national emergency, resulting in an effective tariff rate on Chinese goods of 30 percent.
In previous tit-for-tat moves, tariffs on U.S. and Chinese goods had spiked as high as 125 percent and 145 percent, respectively, which Treasury Secretary Scott Bessent had described as the 'equivalent of an embargo.'
The White House said the 34 percent reciprocal tariffs on U.S. and Chinese goods will be suspended for 90 days beginning Wednesday, May 14th.
Both nations also agreed to establish a mechanism to continue important discussions about trade and economics, the White House said.
President Donald Trump told reporters 'maybe the most important thing' to come out of the trade talks was that China has 'agreed to open up.'
The sharp pullback by the gold futures also came amid a surge by the value of the U.S. dollar, with the U.S. dollar index jumping by 1.5 percent to its best levels in over a month.
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