Investing.com-- Gold prices fell in Asian trade on Tuesday, pressured by improving risk appetite and waning haven demand as investors awaited a positive conclusion to ongoing U.S.-China trade talks.

The yellow metal clocked strong gains in recent weeks as heightened uncertainty over the U.S. economy and President Donald Trump’s trade policies drove up haven demand.

Increased geopolitical tensions, especially between Russia and Ukraine, also fueled haven demand, as did a string of weak economic readings from China.

But this trend reversed on Monday, as Washington and Beijing kicked off high-level talks in London. Improving risk appetite also largely offset concerns over escalating violence in Los Angeles, California, as Trump deployed the military against protests linked to his immigration crackdown.

Spot gold fell 0.8% to $3,308.32 an ounce, while gold futures for August fell 0.8% to $3,327.75/oz by 00:23 ET (04:23 GMT).

Other precious metals also retreated after clocking strong gains in the past week. Platinum futures fell 0.1% to $1,224.60/oz, retreating from a four-year high.

Silver futures fell 0.4% to $36.660/oz but remained in sight of a recent 13-year high.

Gold slips as dollar firms, risk appetite improves amid US-China talks

Metal markets were pressured by increased positioning in the dollar ahead of key U.S. inflation data due on Wednesday. The print is expected to show a mild increase in inflation.

Gold was dented by softer safe haven demand, as traders pivoted to more risk-driven assets amid positive signals on U.S.-China trade talks.

Trump flagged positive, albeit vague trends in the ongoing talks, while reports suggested that the president was also considering walking back restrictions on chips and technology exports to China, a move that could help further deescalate trade tensions between the countries.

Trade talks are set to continue on Tuesday, with markets closely watching for announcements of any progress in negotiations.

Expectations of a further deescalation in trade tensions, after a temporary trade truce in May, drove up risk appetite and undermined demand for gold.

Still, the yellow metal was sitting on a 26% gain so far in 2025, having hit a series of record highs in recent months.

Copper shrugs off soft China data

Copper prices fell on Tuesday, but were sitting on strong gains from the prior session despite a swathe of weak economic readings from top importer China.

Benchmark copper futures on the London Metal Exchange fell 0.3% to $9,757.60 a ton, while U.S. copper futures fell 0.4% to $4.8848 a pound. Both contracts rose 1% on Monday.

Gains in copper came even as data showed China’s copper imports fell sharply in May, amid a broader deterioration in local demand. China’s overall export growth also missed expectations.

But hopes for a U.S.-China trade deal offset concerns over persistent Chinese economic weakness, although the recent decline appeared to be spurred largely by steep U.S. trade tariffs on the country.