(Bloomberg) — Gold edged closer to the record high reached in the previous session, as traders took advantage of a sharp selloff at the end of last week to enter dip-buying.
Bullion traded near $4,365 an ounce — after surging as much as 3.1% in the previous session to a peak of $4,381.52. That move came despite easing trade tensions and the prospect of the US government reopening, with technical indicators — including the relative strength index — showing that the ferocious rally that began in August may be overheated.
On Monday, yields on 10-year Treasuries fell as evidence of an emerging oil surplus eased fears over inflation ahead of the release of the September consumer price index on Friday. Markets have been forced to rely more heavily on a broader array of economic indicators and private data to fill the gap left by a federal shutdown that began Oct. 1. Lower yields typically boost the appeal of non-interest bearing gold.
Investors were also weighing the latest developments in US-China relations. President Donald Trump said the US will “be fine” with Beijing before the two sides return to the negotiating table. Still, the US leader — due to meet President Xi Jinping next week — reiterated his threat to follow through on a tariff hike on Chinese goods “if there isn’t a deal” by Nov. 1.
Meanwhile, National Economic Council Director Kevin Hassett suggested the government shutdown might end this week.
Precious metals have been on a tear this year, with gold registering a ninth straight week of gains. Prices are up more than 65% so far in 2025, underpinned by central-bank buying and inflows to exchange-traded funds. They’ve also benefited from soaring demand for havens in the face of geopolitical and trade tensions, rising fiscal debt levels and threats to the Federal Reserve’s independence.
Silver, meanwhile, has run even harder — surging more than 80% this year — with gains driven by some of the same macro factors supporting gold, as well as a historic squeeze in the London market.
Benchmark prices for silver are trading above New York futures, prompting traders to ship metal to the UK capital to ease tightness. The spread between the two trading hubs remains wide at about $1 an ounce, though that’s much narrower than a gap of as much as $3 last week.
Spot gold was up 0.2% to $4,365.68 an ounce at 7:22 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver edged up, after closing 1% higher on Monday. Platinum and palladium dipped.
More stories like this are available on bloomberg.com