Spot gold was down 0.4% at $3,964.35 per ounce, after hitting its lowest level since October 6

Gold slid to a three-week low on Tuesday as hopes for progress in China-U.S. trade talks dimmed its safe-haven allure.

Spot gold was down 0.4% at $3,964.35 per ounce as of 1745 GMT, after hitting its lowest level since October 6.

Gold, a traditional hedge during times of uncertainty and a non-yielding asset, has gained more than 51% this year, bolstered by ongoing geopolitical and trade tensions.

The U.S.-China trade tensions have really diminished, with a possible trade deal later this week after a summit meeting between Presidents Xi and Trump. That’s bearish for the safe-haven metals, said Jim Wyckoff, senior analyst at Kitco Metals.

Top Chinese and U.S. economic officials this weekend finalized the framework of a potential deal for President Donald Trump and Chinese President Xi Jinping to review at their meeting on Thursday.

Hopes of easing trade tensions have stoked optimism across stock markets, with the U.S. stock market’s main indexes opening at record highs on Tuesday.

Investors also await the outcome of the U.S. central bank’s two-day policy meeting on Wednesday. The bank is widely expected to lower interest rates by a quarter of a percentage point.

The safe-haven metal’s outlook, however, remains murky, with some analysts seeing continued highs, while others remain cautious.

The London Bullion Market Association’s annual gathering predicted prices at $4,980 per ounce over the next 12 months, while both Citi and Capital Economics lowered their gold price forecasts on Monday.

The market has become overbought, which finally gave rise to this week’s correction, Bank of America said in a note, adding that gold is approaching its bearish forecast of $3,800 per ounce in the fourth quarter.