The price of gold was tumbling on Monday after the U.S. and China announced a deal to cut tariffs on each other’s goods, causing investors to pivot to risk-on assets.
Futures prices dropped 3.7% to $3,219 per Troy ounce in early trading, putting the precious metal at its lowest level in a month.
Tariff uncertainty had sparked a record-breaking run for bullion, which topped $3,000 an ounce for the first time ever back in March. Signs of a thawing in tensions between the world’s two largest economies appear to have dented its appeal as a safe haven that can maintain its value in times of heightened volatility.