Gold Prices Dip From Record Highs as Trade Optimism Grows
Gold prices slipped in Asian trading on Tuesday, easing from all-time highs as profit-taking and signs of improving U.S.–China trade relations weakened demand for the metal’s safe-haven appeal.
Gold Retreats After Hitting Record Levels
Spot gold fell 0.8% to $4,322.95 an ounce by 02:27 ET (06:27 GMT), retreating from Monday’s record high of $4,381.21 as traders locked in profits following a strong week-long rally.
Meanwhile, U.S. gold futures for December delivery declined 0.5% to $4,339.35 an ounce.
The pullback came after U.S. President Donald Trump struck a conciliatory tone on trade, saying he expected a “strong and fair” deal with Chinese President Xi Jinping at the upcoming South Korea summit.
Trade Talks Ease Market Anxiety
Further easing tensions, U.S. Treasury Secretary Scott Bessent is scheduled to meet Chinese Vice Premier He Lifeng in Malaysia this week, marking a positive step in reviving economic dialogue.
Trump’s earlier threat of imposing 100% tariffs on Chinese imports starting November 1 has kept investors cautious, but optimism is now returning to global markets.
In Washington, White House economic adviser Kevin Hassett said on Monday that the U.S. government shutdown was “likely to end this week,” with negotiators close to finalizing a bipartisan funding deal.
These developments eased political and economic uncertainty, reducing the need for investors to hold defensive assets like gold.
Focus Turns to U.S. Inflation Data
Attention now shifts to the delayed release of the U.S. Consumer Price Index (CPI), expected on Friday.
Economists forecast headline inflation to rise 3.1% year-on-year, and a stronger-than-expected reading could dampen hopes for a Fed rate cut at the October policy meeting.
Still, analysts note that bullion remains supported by expectations of Federal Reserve easing, Trump’s tariff rhetoric, and continued central bank gold purchases.
Other Metals Also Weaken as Dollar Firms
Other precious and industrial metals also retreated as a slightly stronger U.S. dollar made commodities more expensive for international buyers.
Silver futures dropped 1.5% to $50.68 per ounce, while platinum slipped 1.1% to $1,633.60.
On the London Metal Exchange, copper futures edged down 0.2% to $10,666.20 per ton, and U.S. copper futures declined 1% to $5.00 per pound.
