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Gold prices hit a fresh record of $4,179.37/oz on Tuesday in Asian trading, while silver also reached its all-time high of $53.45 as heightening trade tensions between the U.S. and China added to global demand pressure.
However, after reaching the peak level, both safe-haven assets sharply retreated, with gold subsiding to $4,105 and silver to $51.22 as of 6:30 a.m. GMT.
Other precious metals also fell after starting the session up more than 1%, with both platinum and palladium down over 1%, to $1,642 and $1,507.50, respectively.
Investors are turning their attention to Federal Reserve Chair Jerome Powell’s remarks at the NABE annual meeting on Tuesday, seeking signals on the pace of future rate cuts.
Futures markets currently imply a 98.9% probability of a 25-basis-point cut in October and a 96.9% chance of another cut in December, according to CME Group's FedWatch Tool.
Gold, which offers no yield, typically performs better in lower interest rate environments.
Meanwhile, U.S. President Donald Trump is still expected to meet Chinese President Xi Jinping in South Korea later this month, according to Treasury Secretary Scott Bessent.
The diplomatic context remains tense after Beijing decides to tighten rare-earth export controls, a move that prompted Trump to retaliate with a 100% tariff threat on Chinese goods and new export restrictions on U.S.-made software effective Nov. 1.
Adding to the pressure, the U.S. government shutdown, now in its 13th day, has begun to weigh on the country’s economic activity.
With the recent safe-haven rally that began in September after the Fed’s first rate cut, all precious metals have extended their year-to-date gains.
Gold has yielded 56.35% since January, with a 12% surge over the past month, while silver has soared 75.18% year-to-date and 22.1% over the month.
Platinum has topped all precious metals in gains, rising 80% year-over-year and 16.6% over the month. Palladium has also added 65% to its price throughout the year, with a surge of over 21% in a month.
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