Gold prices eased during Tuesday's Asian deals as the metal’s rally once again met resistance around the US$4,380 level, with traders locking in profits ahead of high-level U.S.-China trade talks later this week.
By 4:30 pm AEDT (5:30 am GMT), spot gold was trading 0.7% lower at $4,323.63 per ounce, retreating from record highs as market participants reassessed risk sentiment amid ongoing trade tensions and an extended U.S. government shutdown.
Markets turned cautiously optimistic after reports that U.S. Treasury Secretary Scott Bessent plans to meet Chinese Vice Premier He Lifeng in Malaysia this week in an effort to defuse tensions between Washington and Beijing.
Easing concerns about the trade dispute helped revive the U.S. dollar, which has capped gold’s upside momentum for now.
White House Economic Adviser Kevin Hassett also said on Monday that the ongoing government shutdown could “likely end this week”, further improving risk appetite and weighing slightly on safe-haven demand.
Even so, the precious metal continues to draw support from expectations of looser monetary policy. Investors are betting on two interest rate cuts by the Federal Reserve before year-end, keeping bargain-hunting demand alive for gold.
