(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.<\/p>\n
Bullion traded near $4,365 an ounce \u2014 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 \u2014 including the relative strength index \u2014 showing that the ferocious rally that began in August may be overheated.<\/p>\n
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.<\/p>\n
Investors were also weighing the latest developments in US-China relations. President Donald Trump said the US will \u201cbe fine\u201d with Beijing before the two sides return to the negotiating table. Still, the US leader \u2014 due to meet President Xi Jinping next week \u2014 reiterated his threat to follow through on a tariff hike on Chinese goods \u201cif there isn\u2019t a deal\u201d by Nov. 1.<\/p>\n
Meanwhile, National Economic Council Director Kevin Hassett suggested the government shutdown might end this week.\u00a0<\/p>\n
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\u2019ve 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\u2019s independence.<\/p>\n
Silver, meanwhile, has run even harder \u2014 surging more than 80% this year \u2014 with gains driven by some of the same macro factors supporting gold, as well as a historic squeeze in the London market.<\/p>\n
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\u2019s much narrower than a gap of as much as $3 last week.<\/p>\n
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.<\/p>\n