Gold prices continued to grind lower during Monday’s trading session, October 27, extending losses after halting a nine-week winning streak amid progress in trade talks between the U.S. and China.
The December futures contract on the MCX opened lower at ₹1,22,500 per 10 grams, and the sell-off deepened during the evening session, dragging prices to the day’s low of ₹120,330, a fall of ₹3,121, or 2.51%, from Friday’s close.
Today’s decline also marked the second consecutive drop in the yellow metal after last week’s sharp 2.8% plunge, its steepest weekly fall since June 2025.
Improving US-China ties dull gold’s shine
A trade deal between the U.S. and China appears to be drawing closer, with officials from both sides saying on Sunday that they had reached an initial consensus for President Donald Trump and Chinese leader Xi Jinping to finalize during their upcoming high-stakes meeting.
U.S. President Donald Trump said Monday that Washington and Beijing were poised to “come away with” a trade deal ahead of his expected meeting with Xi Jinping. Speaking aboard Air Force One en route to Japan from Malaysia, Trump added that he could sign a final deal on TikTok as early as Thursday, according to media reports.
Trump is set to meet Chinese President Xi Jinping later this week as part of his trip to Asia.
U.S. Treasury Secretary Scott Bessent said Sunday that U.S. and Chinese officials had worked out a “substantial framework” for a trade deal that would avert 100% U.S. tariffs on Chinese goods and delay China’s planned rare-earth export controls ahead of this week’s trade discussions.
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