Gold regained some ground after falling below $4,000 an ounce on Monday, driven by progress in US-China trade discussions that dampened interest in safe-haven assets.
On Tuesday, gold prices climbed as much as 0.9% following a 3.2% drop in the previous session. Negotiators from Washington and Beijing reported a series of agreements on issues like tariffs and export controls. Meanwhile, US Treasuries saw a decline despite traders betting that the Federal Reserve is poised to ease monetary policy this week, with rising yields impacting demand for non-interest-bearing gold.
Gold has retreated significantly from a record high exceeding $4,380 an ounce last Monday, following an intense rally. However, it remains up over 50% year-to-date, supported by central bank buying and the debasement trade, where investors steer clear of sovereign debt and currencies amid soaring budget deficits, to protect their assets.
“While gold continues to make lower lows and futures volumes remain elevated on down days, calling the bottom is a tough ask,” stated Chris Weston, head of research at Pepperstone Group Ltd. He recommended allowing the market to find its footing before making strategic purchases.
The recent surge and subsequent decline of gold prices were a central topic at the London Bullion Market Association’s precious metals conference held in Kyoto. John Reade, a market strategist at the World Gold Council, noted that central bank demand has softened, and a deeper price correction might be welcomed by professional dealers.
Looking ahead, analysts from Citigroup, including Max Layton, anticipate that the US’s move toward negotiated agreements with China, coupled with a reversal in gold-price momentum and the potential resolution of the US government shutdown, could push gold prices lower in the coming weeks. They project bullion may fall to $3,800 an ounce within the next three months.
As of 9:27 a.m. in Singapore, spot gold rose 0.8% to $4,015.35 an ounce, while the Bloomberg Dollar Index decreased by 0.1%. Silver prices advanced after a 3.7% drop on Monday, while platinum dipped and palladium increased.
Federal Reserve policymakers are widely expected to lower interest rates by 25 basis points during their two-day policy meeting concluding Wednesday, marking the second consecutive rate cut.
Additionally, the market is evaluating five candidates for the position of Fed Chair, with current Fed board members Christopher Waller and Michelle Bowman, former Fed Governor Kevin Warsh, White House National Economic Council Director Kevin Hassett, and BlackRock Inc. executive Rick Rieder making the shortlist.
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Published on October 28, 2025.
