Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Gold prices retreated from record highs in Asian trading on Tuesday, pressured by profit-taking and early signs of easing U.S.–China trade tensions that weakened demand for the metal’s safe-haven appeal.
At 02:27 ET (06:27 GMT), spot gold slipped 0.8% to $4,322.95 per ounce, retreating from Monday’s all-time high of $4,381.21. U.S. gold futures for December delivery also edged 0.5% lower to $4,339.35/oz, as investors booked profits following a week-long rally that lifted prices to unprecedented levels.
Easing Political and Trade Risks Pressure Bullion
The retreat followed a shift in tone from U.S. President Donald Trump, who expressed optimism about achieving a “strong and fair” trade deal with China ahead of his meeting with President Xi Jinping in South Korea next week.
Meanwhile, U.S. Treasury Secretary Scott Bessent is set to meet Chinese Vice Premier He Lifeng in Malaysia later this week, signaling efforts to stabilize relations that have recently soured over rare earth export restrictions and tariff threats.
Adding to the improved mood, White House economic adviser Kevin Hassett said the U.S. government shutdown, now in its third week, was “likely to end this week” amid progress on a bipartisan funding deal.
These developments reduced the immediate need for defensive positioning, prompting some investors to trim gold holdings after its historic rally.
Inflation Data Looms as Next Catalyst
Market focus has now turned to the U.S. Consumer Price Index (CPI) report due Friday, delayed because of the shutdown. Economists forecast a 3.1% year-on-year rise in headline inflation.
A stronger-than-expected CPI reading could temper expectations for a Federal Reserve rate cut in October, potentially putting renewed pressure on gold. However, the metal remains underpinned by broad expectations of monetary easing, central bank purchases, and ongoing geopolitical risks.
Other Metals Weaken as Dollar Firms
The U.S. dollar’s modest rebound weighed further on metal markets, making commodities priced in dollars more expensive for foreign investors.
Silver futures fell 1.5% to $50.68 per ounce, while platinum futures slipped 1.1% to $1,633.60/oz.
Industrial metals were also lower, with London copper edging 0.2% down to $10,666.20 a ton, and U.S. copper futures sliding 1% to $5.00 per pound amid lingering uncertainty over Chinese industrial demand.
Despite the short-term correction, analysts say gold’s long-term outlook remains constructively bullish, supported by monetary policy easing expectations and central bank diversification away from the dollar.
