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Gold (GC=F)

Gold prices extended their sharp retreat for a third straight session on Wednesday, as investor appetite for the safe-haven asset diminished amid signs of renewed trade dialogue between the United States and key global partners.

Gold futures fell 2.5% to $3,237.20 per ounce at the time of writing, while the spot price declined 1.6% to $3,234.83 an ounce.

"There is some optimism that there will be some de-escalation of the trade war between the US and China," David Meger, director of metals trading at High Ridge Futures, told Reuters.

The pullback comes after reports from Chinese state-affiliated media indicated that the Trump administration had reached out to Beijing to reopen trade negotiations.

Read more: FTSE 100 LIVE: Stocks rise as China says US has ‘reached out’ for tariff talks

Market sentiment has been buoyed further by Trump's efforts to ease auto tariff impacts through executive orders signed on Tuesday, and his comments on Wednesday suggesting "potential" trade deals with India, South Korea, and Japan.

The shift in tone has eroded demand for gold, which surged to an all-time high of $3,500.05 per ounce last week amid escalating global trade tensions and geopolitical uncertainty.

Despite the recent pullback, analysts remain broadly bullish. A quarterly Reuters poll published this week projected an average annual gold price above $3,000 for the first time, citing persistent trade frictions and a global pivot away from the US dollar as key drivers.