Gold has double-topped and retreated in European trading on Tuesday as profit-taking hit the metal and easing US–China trade tensions reduced its safe-haven appeal.
Spot gold reached a high of $4,381 on Monday before sliding to $4,272 by 10:00 GMT on Tuesday, hitting a low of $4,243 earlier in the session. The market has alternated between a staircase up and an elevator down in recent sessions, reflecting ongoing volatility.
The pullback followed conciliatory remarks from US President Donald Trump, who expressed optimism for a “strong and fair” deal with China ahead of his summit with President Xi Jinping in South Korea next week.
US Treasury Secretary Scott Bessent is also scheduled to meet Chinese Vice Premier He Lifeng in Malaysia later this week, after Trump threatened new 100% tariffs on Chinese goods starting November 1.
White House economic adviser Kevin Hassett signaled that the prolonged US government shutdown was “likely to end this week,” easing political uncertainty and lowering demand for defensive assets like gold.
Investors remain focused on the delayed US Consumer Price Index data, now due Friday. Economists expect headline inflation to rise around 3.1% year-on-year, with hotter readings potentially dampening bets on a Fed rate cut in October.
Still, gold remains underpinned by expectations of imminent Federal Reserve easing, ongoing central bank purchases, and the market’s attention to trade and geopolitical risks.