Gold Prices Rebound as US-China Trade Tensions Ease
Gold prices climbed in Asian trading on Monday, recovering part of last week’s losses as markets reacted positively to conciliatory comments from U.S. officials regarding the ongoing trade dispute with China.
Spot gold increased by 0.4% to $4,267.70 per ounce, while December gold futures advanced 1.6% to $4,280.65/oz by 00:49 ET (05:49 GMT). Last week, spot gold reached a record high of $4,379.44/oz, before retreating amid shifting market sentiment.
Gold Retreats from Record Highs After Trade Remarks
The yellow metal pulled back from record levels after President Donald Trump indicated that a prolonged trade war with China was unlikely. He stated that high tariffs on Chinese imports were “not sustainable” and confirmed plans to meet President Xi Jinping in South Korea within two weeks.
In addition, U.S. Treasury Secretary Scott Bessent confirmed that new trade discussions with Chinese officials were scheduled for this week. Trump’s comments lifted confidence in global markets, reducing safe-haven demand for gold and redirecting capital toward riskier assets.
Some investors also took profits following gold’s sharp two-month rally, which had been driven by concerns over the U.S. economy, the ongoing government shutdown, and rising expectations of further Federal Reserve interest rate cuts.
Geopolitical Risks Support Precious Metals
Gold’s modest rebound on Monday was also supported by renewed geopolitical uncertainty. Tensions resurfaced in the Israel-Hamas ceasefire after weekend clashes, though Israel later confirmed that the truce remained intact and that humanitarian aid to Gaza would resume.
Meanwhile, focus in Washington shifted to efforts to broker a Russia-Ukraine ceasefire. Reports suggested that President Trump met with Ukrainian President Volodymyr Zelensky over the weekend, urging potential concessions to Moscow while signaling a reduction in U.S. military support.
These developments, combined with persistent worries about the U.S. economy and the ongoing government shutdown, kept safe-haven demand for gold, silver, and platinum well supported.
Silver and Copper Also in Focus
Alongside gold, spot silver rose 0.6% to $52.25/oz, staying close to its all-time highs. Spot platinum, however, slipped 1% to $1,597.02/oz.
In industrial metals, copper prices rallied after encouraging economic data from China. The country’s GDP expanded slightly faster than expected in the third quarter, although it remained at its slowest growth rate in a year.
Summary
Gold prices regained ground as trade tensions between the U.S. and China eased, offering markets a temporary sense of relief. While profit-taking capped gains, persistent geopolitical risks and economic uncertainty continued to support safe-haven demand for gold and other precious metals.
