Gold is trading down more than 1.5% in mid-European trading today, Monday, October 27, the opening session of the week. Profit-taking continues after hitting successive record highs recently, benefiting from rising optimism about an agreement between Washington and Beijing amid anticipation of the US Federal Reserve meeting next Wednesday. The yellow metal is trading down approximately 1.67% at $4,043 per ounce, while silver is trading at $47.85 per ounce, down 1.52%.

The yellow metal, a leading safe haven in financial markets, is being affected by rising optimism about an agreement between the United States and China. The US Treasury Secretary indicated on Sunday that a substantial framework is expected to be reached that will avoid increased tariffs and discuss several issues, as a summit between Trump and Chinese President Xi Jinping is expected to be held next Thursday in South Korea.

Meanwhile, markets are awaiting the US Federal Reserve meeting, which begins tomorrow, Tuesday, and ends on Wednesday, October 29. Markets are anticipating a 25 basis point interest rate cut. According to the CME’s FedWatch tool, markets are pricing in a 96% chance of a rate cut. Markets will also be closely monitoring Jerome Powell’s remarks, particularly regarding the future of interest rates for the remainder of the year, with markets pricing in another 25 basis point cut in December at a 95% chance.

Platinum is trading at $1,592, down 0.86%, while palladium is down 0.59%, trading at $1,420.