Gold experiences a decline amid optimism surrounding US-China trade discussions; market participants are closely monitoring Federal Reserve policy. U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are set to engage with China’s leading economic official in Switzerland this week, according to U.S. officials, marking a potential initial move towards addressing a trade war that is impacting the global economy.

On Wednesday, gold prices experienced a decline as the optimism surrounding potential U.S.-China trade discussions diminished the demand for safe-haven assets. Meanwhile, investors prepared for the Federal Reserve’s policy meeting scheduled for later in the day. Spot gold experienced a decline of 1.3%, settling at $3,386.36 per ounce as of 0024 GMT. The metal experienced an increase of nearly 3% in the preceding session. U.S. gold futures experienced a decline of 0.8%, settling at $3,395.20.

U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are set to engage with China’s leading economic official in Switzerland this week, according to U.S. officials. This meeting may represent an initial move toward addressing the trade war that is currently impacting the global economy. Last month, the U.S. and China enacted reciprocal tariffs, igniting a trade war that has heightened concerns regarding a potential global recession. On Tuesday, U.S. President Donald Trump announced that he and senior administration officials will evaluate potential trade agreements in the coming two weeks to determine which ones to endorse.

The market’s attention will be directed towards the Federal Open Market Committee (FOMC) meeting later today, where the U.S. central bank is anticipated to maintain interest rates at their current level. The Federal Reserve has maintained its policy rate within the 4.25%-4.50% range since last December. Market participants are keenly anticipating Fed Chair Jerome Powell’s remarks for insights into the potential timing of future interest rate cuts.

Gold, historically regarded as a safeguard against economic and political uncertainties, flourishes in an environment characterized by low interest rates. Spot silver declined by 0.6% to $33.03 an ounce, while platinum decreased by 0.4% to $980.95, and palladium experienced a loss of 0.5% to $969.75.