Washington: Gold prices dropped below the $4,000 mark on Tuesday as easing geopolitical tensions and growing optimism over global trade dampened demand for the precious metal. The decline comes despite a softer US dollar and expectations of interest rate cuts by the Federal Reserve, both of which typically support gold prices.

Spot gold fell nearly two percent to around $3,899 per ounce, its lowest level in three weeks. US gold futures for December delivery also declined by 2.6 percent. Analysts said the fall reflected a shift in investor sentiment as progress in trade discussions between the United States and China reduced the need for safe-haven assets.

Gold has been one of the year’s strongest-performing commodities, rising more than 50 percent and reaching an all-time high of about

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