Gold prices encounter

**Wall Street Journal Report**  

**Safe-Haven Demand Recedes as Global Tensions Ease: Gold Plunges, Risk Assets Rally**  

The past weekend witnessed significant developments as positive progress in U.S.-China trade talks and easing geopolitical conflicts in regions like India-Pakistan led to a retreat in global safe-haven sentiment, triggering a sharp decline in gold prices.  

**Gold Tumbles Over $40 in Early Asian Trading**  

On Monday, spot gold prices fell sharply by more than $40 in early Asian trading, dropping as much as 1.4% intraday to $3,278 per ounce at press time. This follows a 2.6% weekly gain last week.  

**U.S.-China Trade Breakthrough Dents Gold Demand**  

According to CCTV News, high-level U.S.-China trade talks yielded "important consensus and substantive progress," with both sides agreeing to establish a bilateral trade consultation mechanism. Details will be finalized soon, and a joint statement is expected on May 12.  

This development has weakened safe-haven demand for gold, shifting investor focus to the outcomes of negotiations between the world's two largest economies. The Trump administration's trade war had been a key driver behind this year's gold rally, pushing prices to a record high near $3,500/oz last month.  

**Geopolitical De-escalation Adds Pressure**  

The India-Pakistan ceasefire appeared to hold on Sunday after four days of clashes between the nuclear-armed neighbors that nearly escalated into full-scale war. Meanwhile:  

- **Russia-Ukraine Talks**: President Putin proposed resuming direct negotiations in Istanbul on May 15, reiterating Russia's willingness to talk without preconditions.  

- **U.S.-Iran Nuclear Talks**: The delayed fourth round of negotiations commenced in Oman’s capital on the 11th.  

**Risk Assets Rally**  

As gold fell, U.S. stock futures surged:  

- Nasdaq futures rose 1.5%, S&P 500 futures gained 1.27%.  

- Analysts note that easing trade and geopolitical tensions may redirect capital from safe havens to risk assets, sustaining pressure on gold. However, continued central bank purchases and retail speculation could provide downside support.  

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