Gold prices have been edging lower in late October 2025 due to a shift in risk sentiment and that dampened safe-haven demand, alongside firmer U.S. dollar momentum and improving trade expectations between the U.S. and China. In practical terms, the selling has been driven by three main factors:

• Diminished safe-haven appeal as geopolitical tensions ease and trade talks show progress. This reduces the premium investors place on gold during crises, helping pressure the metal lower.
• A stronger or resilient U.S. dollar, which makes dollar-denominated gold more expensive for holders of other currencies and tends to cap gains.
• Profit-taking after a multi-week rally, with some investors locking in gains after gold touched near-term highs and traders repositioned around anticipated near-term support and resistance levels.

If you want a sharper assessment, the latest headlines point to gold dipping below key thresholds (e.g., around $4,000 per ounce) as optimism about a U.S.–China trade détente reduces the urgency of holding gold as a hedge, while some analysts expect the move to continue until a clearer macro signal appears. At the same time, market participants are watching for potential catalysts that could reverse the trend, such as renewed geopolitical shocks or a shift in U.S. inflation data that might alter expectations for the dollar and interest rates.