Gold prices fall back from record highs; easing trade worries weigh

Investing.com-- Gold prices fell back from record highs Tuesday, pressured by profit-taking and signs of easing U.S.–China trade tensions that dampened demand for the safe haven.

At 09:20 ET (13:20 GMT), Spot gold fell 3.4% at $4,201.65 an ounce, retreating from Monday’s all-time high of $4,381.21/oz as investors locked in gains following a week-long rally. U.S. Gold Futures for December fell 0.5% to 4,217.25/oz.

Gold slips amid signs on easing trade tensions

The pullback came as U.S. President Donald Trump struck a conciliatory tone on trade, saying he expected a “strong and fair” deal with China, aiming constructive exchanges with President Xi Jinping at a summit in South Korea next week.

U.S. Treasury Secretary Scott Bessent is expected to meet Chinese Vice Premier He Lifeng in Malaysia later this week, following renewed strained relations. Trump has threatened to impose additional 100% tariffs on Chinese goods starting Nov. 1.

Adding to the shifting sentiment, White House economic adviser Kevin Hassett said on Monday that the prolonged U.S. government shutdown was “likely to end this week,” with negotiators nearing a bipartisan funding deal.

The easing of political uncertainty, alongside trade optimism, reduced the urgency for investors to hold defensive assets, like gold.

Gold’s rally could soon unravel - Capital Economics

Gold’s record-breaking rally could soon unravel, according to John Higgins, Chief Markets Economist at Capital Economics, who warned that the metal’s price has surged far beyond its “fair” value and may now be in bubble territory.

Higgins argues that gold’s price has outpaced not only inflation but also its historical relationship with other real assets.

“At the start of 2025, the price of gold was already close to its prior peak in real terms, which it had reached in 1980,” he wrote in a note.

“But now, the real price of gold is nearly 60% higher than that peak, and more than three times its average since 1980.”

Metal markets fall as greenback strengthens

Other precious and industrial metals also traded lower on Tuesday as a slightly stronger greenback made them costlier for overseas buyers. 

Silver Futures dropped 4.8% to $48.95 per ounce, while Platinum Futures fell 5.3% to $1,565.10/oz.

Benchmark Copper Futures on the London Metal Exchange edged down 0.6% to $10,624 a ton, while U.S. Copper Futures declined 1.1% to $4.9803 a pound.

Ayushman Ojha contributed to this article