Gold prices slipped in Asian trading on Tuesday, easing from unprecedented highs as traders locked in profits and signs of improving U.S.–China trade relations tempered demand for safe-haven assets.
Spot gold fell 0.8% to $4,322.95 per ounce by 02:27 ET (06:27 GMT), pulling back from Monday’s record peak of $4,381.21/oz after a sustained rally. U.S. gold futures for December delivery also edged down 0.5% to $4,339.35/oz.
Easing tensions dull gold’s safe-haven appeal
The decline came as Donald Trump struck a more conciliatory note on trade, saying he expected a “strong and fair” deal with China and looked forward to constructive discussions with Xi Jinping during next week’s summit in South Korea.
Adding to the optimism, U.S. Treasury Secretary Scott Bessent is scheduled to meet Chinese Vice Premier He Lifeng in Malaysia later this week. This comes amid lingering trade frictions and Trump’s recent threat to impose 100% tariffs on Chinese goods beginning November 1.
White House economic adviser Kevin Hassett further boosted market sentiment on Monday by stating that the extended U.S. government shutdown was “likely to end this week,” as negotiations neared a bipartisan deal.
This easing of both political and trade risks has reduced the urgency for investors to seek refuge in gold.
Market turns to U.S. CPI for guidance
Investors are now shifting focus to the delayed U.S. Consumer Price Index data, set for release on Friday. Economists expect headline inflation to rise around 3.1% year-on-year, with a hotter print potentially lowering the likelihood of a rate cut at the Federal Reserve’s October meeting.
Still, gold remains underpinned by expectations of Fed easing, the lingering impact of Trump’s tariff measures, and continued buying by central banks, which provide structural support to the market.
Stronger dollar weighs on metals complex
The United States dollar strengthened modestly, adding pressure to metal markets by making commodities priced in dollars more expensive for international buyers.
Silver futures declined 1.5% to $50.68 per ounce, while platinum futures slipped 1.1% to $1,633.60/oz. Benchmark copper on the London Metal Exchange eased 0.2% to $10,666.20 a ton, and U.S. copper futures were down 1% at $5.00 a pound.