Gold prices continued their record-breaking rally during Asian trade on Tuesday, surging beyond the US$4,100 mark as investors awaited a key speech from Federal Reserve Chair Jerome Powell and weighed developments in United States-China trade relations.
By 3:35 pm AEDT (4:35 am GMT), spot gold rose US$45.99, or 1.1%, to US$4,156.83 per ounce.
The gains came as the U.S. dollar paused its overnight rebound, with market sentiment buoyed by signs of easing trade tensions between Washington and Beijing.
China’s Commerce Ministry said early Tuesday that it had notified the United States in advance of its new rare earth export controls and held working-level discussions on Monday through existing trade consultation channels.
The communication, seen as a positive signal, helped calm markets following weeks of heightened friction between the two economies.
Meanwhile, U.S. Treasury Secretary Scott Bessent confirmed that President Donald Trump remains on track to meet Chinese President Xi Jinping in South Korea later this month.
Beyond geopolitics, gold’s rally continues to be fuelled by expectations that the Fed will deliver two rate cuts before year-end, alongside the economic drag from the ongoing U.S. government shutdown.
Market participants are now focused on a series of speeches by Fed officials later in the day, with Chair Powell’s remarks seen as the key event.
