The yellow metal lost its luster during today’s trading, falling 1.9% and heading for a second consecutive session of declines.

Gold is currently trading near the bullish trend line, noting that if it manages to stay below, it could drop towards the first weekly support level at $3952. A sustained move below this level, gold could continue its downward correction to the second weekly support level at $3789. 

On the upside, if gold fails to stabilize beneath the upward trend line, then exceeds the weekly pivot point at $4166, it will regain strength, testing resistance levels at $4329 then $4544.

In terms of economic events, over the weekend, negotiators from the U.S. and China said a framework of an agreement had been notched, with the final details being hammered out before being presented to Trump and Xi.

U.S. Treasury Secretary Scott Bessent suggested that, following negotiations, the U.S. will ultimately not place the heightened tariffs on China, while Beijing is open to “concessions” on rare earth export restrictions.

From a fundamental standpoint, investors are awaiting the U.S. Federal Reserve’s interest rate decision, with expectations that Fed officials will cut the borrowing cost by 25 basis points to around 4.00%.

In addition, Federal Reserve Chairman Jerome Powell will hold a press conference, which could provide clues about the future trajectory of interest rates. Least but not last, the Fed will publish its latest growth, inflation and unemployment projections.

Investors are also awaiting the U.S. Core Personal Consumption Expenditures index (PCE), the Fed’s favorite inflation measure. Analysts expect annual Core PCE inflation to decrease toward 2.8% in September from a previous 2.9%. A higher-than-expected reading could prompt the Fed to reconsider cutting interest rates in a more aggressive manner.

Finally, the U.S. will also release its GDP for the third quarter of 2025, with analysts expecting a decrease to 3.0%, following a 3.9% expansion in the second quarter.