Gold slides to three-week low as investors turn to riskier assets

Expectations of easing trade tensions between the United States and China have driven down the price of the precious metal. The global price trend has also been reflected in Uzbekistan, where the cost of gold bars fell noticeably – the price of a 5-gram bar dropped by 2.3% in a single day and by 8.3% compared to last week.

Global gold prices decline amid easing trade tensions

On 27 October, gold prices fell by more than 2%, reaching their lowest level in three weeks, Reuters reported. The decline followed growing optimism about a potential reduction in trade tensions between the US and China.

Hopes for a deal between the two sides have boosted demand for riskier assets while reducing interest in gold, traditionally considered a “safe-haven” asset. Investors are also closely watching the upcoming meeting of the US Federal Reserve this week.

On Tuesday, spot gold fell by 2% to $3,899.94 per ounce – the lowest level since 6 October. Meanwhile, US gold futures for December delivery fell by 2.6% to $3,915.30.

On Monday, US President Donald Trump expressed confidence that a trade agreement with China would soon be reached. During his visit to Malaysia, he announced the signing of several trade and strategic minerals agreements with four Southeast Asian countries.

On Sunday, senior US and Chinese economic officials reached a preliminary agreement on the draft of the trade deal, which Trump and Xi Jinping are expected to discuss on Thursday.

At the same time, the Federal Reserve is expected to cut interest rates during its meeting concluding on Wednesday. Investors are awaiting comments from Fed Chair Jerome Powell regarding future policy directions.

Gold prices fall in Uzbekistan as well

The Central Bank of Uzbekistan set new prices for measured gold bars on 28 October:

5 grams – UZS 7,969,000
10 grams – UZS 15,934,000
20 grams – UZS 31,867,000
50 grams – UZS 79,669,000
100 grams – UZS 159,336,000

Compared to 27 October, the prices fell by 2.5%, and by 8.3% over the past week. According to the Central Bank, nearly the entire new batch of gold bars available in Tashkent this month has already been sold out.

Gold remains a traditional “safe-haven” asset

Gold typically performs well in low-interest-rate environments since it does not generate income but is regarded as a reliable store of value.

Since the beginning of 2025, the spot price of gold has risen by 53%, reaching an all-time high of $4,381.21 per ounce on 20 October. However, it has fallen by 3.2% over the past week.

Citibank analysts on Monday lowered their 0–3 month forecast for gold from $4,000 to $3,800, while Capital Economics projected a price of $3,500 by the end of 2026.

Prepared by: Дониёр Тухсинов

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