Gold Retreats from Record Highs as Trade Optimism and Profit-Taking Weigh on Prices

Gold prices eased in Asian trading on Tuesday, retreating from record highs as investors took profits and optimism grew over potential progress in U.S.–China trade talks. Spot gold slipped 0.8% to $4,322.95 per ounce by 02:27 ET (06:27 GMT), pulling back from Monday’s all-time peak of $4,381.21. U.S. gold futures for December delivery also fell 0.5% to $4,339.35 per ounce.

The decline followed comments from U.S. President Donald Trump, who struck a conciliatory tone on trade relations with China, expressing hope for a “strong and fair” deal ahead of a meeting with President Xi Jinping at a summit in South Korea next week. Meanwhile, Treasury Secretary Scott Bessent is scheduled to meet Chinese Vice Premier He Lifeng in Malaysia this week, signaling renewed diplomatic engagement despite ongoing tariff threats that could see 100% duties imposed on Chinese goods starting November 1.

Adding to the improving market sentiment, White House economic adviser Kevin Hassett said the prolonged U.S. government shutdown could end soon as negotiators close in on a bipartisan deal. The easing of political and trade-related uncertainty reduced the safe-haven demand that recently drove gold to record highs.

Investors are now turning their attention to the delayed U.S. Consumer Price Index (CPI) data due Friday. Analysts expect inflation to rise around 3.1% year-on-year. A stronger-than-expected reading could dampen hopes for a rate cut at the Federal Reserve’s October meeting.

Despite the pullback, gold remains supported by expectations of future Fed easing, central bank purchases, and ongoing trade risks.

Other metals also weakened as a firmer U.S. dollar made commodities more expensive for foreign buyers. Silver futuresfell 1.5% to $50.68/oz, platinum dropped 1.1% to $1,633.60/oz, while copper futures edged down 0.2% to $10,666.20 per ton in London and declined 1% to $5.00 per pound in the U.S.