Gold prices have registered their most substantial weekly loss in six months, declining by 4% to approximately $3,190 per ounce.

This downturn coincided with the initiation of the first direct negotiations between Russia and Ukraine in over three years, held in Turkey.

The discussions concluded with agreements on prisoner exchanges and preliminary conversations regarding a possible ceasefire, although no official truce was announced.

In addition, advancements in trade negotiations between the United States and China contributed to a diminished interest in gold.

The easing tensions between the two largest economies globally resulted in a sharp rebound in high-risk assets, further applying pressure on gold prices.

Christopher Wong, a currency strategist at Oversea-Chinese Banking Corporation, noted signs of a retreat in gold prices, attributing it to the reduced uncertainty from the abatement of trade conflicts, at least temporarily.

The price of gold has decreased over $300 from its record high reached last month.

However, it remains more than 20% higher compared to the beginning of the year.