Gold prices hovered close to record highs on Tuesday, showing resilience even as optimism grows over easing US-China trade tensions and potential progress in reopening the US government.
Bullion spiked as much as 3.1% on Monday, reaching a peak of $4,381.52 an ounce, before settling slightly lower. Analysts suggest the rally, which began in August, may have reached an overheated stage, as indicated by technical charts such as the relative strength index.
Despite signs of improving relations between Washington and Beijing, traders remain cautious. President Donald Trump said the US will “be fine” with China ahead of renewed negotiations, while still warning of higher tariffs if no deal is reached by November 1. Meanwhile, National Economic Council Director Kevin Hassett hinted the ongoing US government shutdown could end this week — another factor influencing investor sentiment.
Gold has surged more than 65% in 2025, marking nine consecutive weeks of gains, fueled by central bank purchases, ETF inflows, and a global rush for safe-haven assets amid geopolitical and fiscal uncertainties. Silver has also outperformed, soaring over 80% this year amid strong demand and a supply squeeze in London’s metal market.
Currently, spot gold trades at $4,368.70 an ounce in Singapore, up 0.3%, while silver remains steady after a 1% rise. Platinum edged higher and palladium held firm, reflecting steady investor appetite for precious metals as market volatility continues.