Gold prices retreated from historic peaks in Asian trading on Tuesday, weighed down by profit-taking and improving sentiment around U.S.–China trade relations, which softened demand for the metal’s traditional safe-haven role.
Spot gold slipped 0.8% to $4,322.95 an ounce by 02:27 ET (06:27 GMT), pulling back from Monday’s record high of $4,381.21/oz as investors booked gains after a week-long rally. U.S. gold futures for December delivery also eased 0.5% to $4,339.35/oz.
Trade optimism tempers safe-haven demand
The move lower followed remarks from Donald Trump, who adopted a more conciliatory stance on trade, saying he expected a “strong and fair” deal with China and looked forward to constructive talks with Xi Jinping during a summit in South Korea next week.
In a further sign of thawing tensions, U.S. Treasury Secretary Scott Bessent is set to meet Chinese Vice Premier He Lifeng in Malaysia later this week. This comes after renewed strains in relations, with Trump threatening to impose additional 100% tariffs on Chinese goods starting November 1.
White House economic adviser Kevin Hassett also added to the improved sentiment by stating on Monday that the prolonged U.S. government shutdown was “likely to end this week,” as negotiators closed in on a bipartisan funding deal.
The easing of political and trade uncertainty has reduced the immediate appeal of defensive assets such as gold.
Focus shifts to U.S. inflation data
Investors are now awaiting the delayed U.S. Consumer Price Index data, scheduled for release on Friday. Economists expect headline inflation to rise around 3.1% year-on-year. A hotter reading could dampen expectations of a potential rate cut at the Federal Reserve’s October meeting.
Despite the pullback, gold remains supported by expectations of imminent Fed policy easing, Trump’s tariff threats, and ongoing central bank buying, which continue to underpin longer-term demand.
Stronger dollar pressures broader metals
The strength of the United States dollar added to the downward pressure on precious and industrial metals, making them more expensive for overseas buyers.
Silver futures fell 1.5% to $50.68 an ounce, while platinum futures dropped 1.1% to $1,633.60/oz. Benchmark copper on the London Metal Exchange edged down 0.2% to $10,666.20 a ton, while U.S. copper futures declined 1% to $5.00 a pound.
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