Gold prices firmed in Asian trading on Monday, recovering part of last week’s steep decline as investors welcomed more conciliatory remarks from U.S. officials on trade relations with China. The precious metal held near record highs, supported by persistent geopolitical uncertainty and lingering concerns over the U.S. economy.
Spot gold gained 0.4% to $4,267.70 per ounce, while December futures advanced 1.6% to $4,280.65 by 00:49 ET (05:49 GMT). Spot prices had surged to a record $4,379.44 an ounce last week before pulling back sharply.
Gold pulls back from peak as trade tensions ease
Gold came under heavy pressure last week after U.S. President Donald Trump struck a more optimistic tone on negotiations with Beijing. Trump said he viewed high tariffs on China as “not sustainable” and confirmed plans to meet Chinese President Xi Jinping in South Korea in two weeks, signaling progress in trade discussions.
U.S. Treasury Secretary Scott Bessent also confirmed that talks with Chinese officials were set for this week, boosting investor confidence and sparking a rally in risk assets. As a result, safe-haven demand for gold cooled, with profit-taking further amplifying the metal’s decline after its sharp rally over the previous two months.
Concerns over a U.S. government shutdown and speculation about further interest rate cuts by Federal Reserve System have provided underlying support for bullion in recent weeks.
Geopolitical tensions help underpin safe-haven demand
Gold’s modest rebound on Monday was also fueled by heightened geopolitical risks. Weekend violence briefly threatened the Israel-Hamas ceasefire, though Israel later confirmed the truce remained in place and that humanitarian aid deliveries to Gaza would resume.
Elsewhere, diplomatic efforts to end the Russia-Ukraine conflict drew attention. Trump met with Ukrainian President Volodymyr Zelensky and reportedly urged him to cede territory to Moscow while refusing additional military aid for Kyiv, underscoring uncertainty over the conflict’s trajectory.
This combination of geopolitical risk and domestic economic worries helped keep safe-haven demand resilient, lending support not only to gold but to other precious metals as well.
Spot silver rose 0.6% to $52.2520 an ounce, staying close to its record high, while platinum slipped 1% to $1,597.02.
Among industrial metals, copper extended gains after positive economic signals from China. The country’s GDP grew slightly more than expected in the third quarter, though at its slowest annual pace in a year, offering some cautious optimism for industrial demand.
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