Trump-Xi Call Eases U.S. Tensions; Gold Drops Below $5,000

The shift came after increased optimism in U.S.-China relations, and this lowered the pressure on safe haven assets. Precious metals and digital assets fell synergistically, which is more indicative of a larger change in risk sentiment.

In a recent X post, analyst Mookie pointed out that gold was dumping following remarks of U.S. President Donald Trump. The comment received a market response as the prices fell below a significant psychological level.

Gold Declines as Trump Indicates Increasing U.S.-Chinese Relations

Gold XAU/USD was at $4,946.53, which is a 0.01% decline below the $5,000 mark. In the initial part of the session, prices moved above $5,080, but the trend lost momentum as the force to sell increased. The fall became more rapid as gold went through $5,040 and was unable to stand any more.

Gold fell below the $5000 psychological mark following a sudden rejection of the recent peaks, and the trend accelerated after the post made by President Trump indicating the reduction of tensions between the U.S. and China. Source: Mookie via X.

Price action went further and reached the level of $4,920-$4,940, where the buyers showed a momentary interest. This decline from the recent highs indicated a halt in the good run that has been taken in the recent times of this year. The short-term momentum changed to the downward direction with the stop orders being hit in the breakdown.

The action came in conjunction with a social media tweet by President Trump. He claimed that he had scored an excellent and very positive phone call with Chinese President Xi Jinping. Trump mentioned talks on trade, military, energy, agriculture, and aviation.

Silver Collapse Puts Strain on Precious Metals

Additionally, the gold weakness happened and was coupled with a severe sell-off of silver. According to an X post by ZeroHedge, silver started falling by close to 20% when China opened its markets. Silver was trading at close to $77.26 at the press time following a quick intraday decline.

The chart shows concurrent gold and silver liquidation, where silver fell close to 20% in an almost vertical move, which indicates forced selling instead of systematic profit-taking. Source: ZeroHedge via X.

Recent data show silver reached its peak of about $90 before the almost vertical downwards trend. Prices are cut across on the ones of $85, $82, and $80 with small breaks. The most aggressive selling took the metal up to the $75 region, and then it leveled off.

Also, the framework displayed the fact that a few weeks of profits were wiped out within a brief span. The previous silver consolidation had been in the range of between $85 and $90, but when this range was broken off, the liquidation gained pace.

The bigger picture indicated that gold and Bitcoin were also declining. This indicated an inter-asset response as opposed to a one-market phenomenon. This loss of reclaiming of the silver made it prone to even more volatility in the course of the session.

Gold Maintains a Wider Investing Trend

As of the data provided at Trading Economics, gold declined to trade at $4,880 per troy ounce, down by $85.2, or 1.72%. The pullback was after a powerful multi-month rally that started around the year at $2,900-$3,000.

Gold has been flexing back at record highs of close to $5,500 in the long-term price data and is in a larger bullish pattern, which suggests the volatility reset rather than trend failure. Prediction: Trading Economics, February 2026

Prices progressed gradually up to $3,300 and $3,500 and then increased rapidly to a level above $4,000. The gains intensified towards the end of the year, with gold breaking through $4,500 and soaring straight to $5,400–$5,500 in early 2026. The most recent fall was an obvious rejection of those highs.

Although it was corrected, the overall trend was positive. The structure remained characterized by increased highs and increased lows throughout the last year. Previous resistance at $4,000-4,200 and $4,500 was present in the medium term.

This decline into the $4,880 range was putting gold back into a late-2025 range of consolidation. This implied a volatility reset but not an all-out change of direction. Nevertheless, the level of sensitivity to political headlines was high, and additional volatility was conditional on the ability of the $4,800 to hold.