2 weeks Ago By Reuters
KUALA LUMPUR: Gold fell more than one per cent on Tuesday after briefly touching a record high of US$3,500 earlier in the session, as comments by US Treasury Secretary Scott Bessent hinting at a thaw in US-China trade tensions fueled optimism in equities and strengthened the dollar.Spot gold fell 1.5 per cent to US$3,372.
68 an ounce by 3:46 p.m. EDT (1946 GMT), after rising as much as 2.
2 per cent to US$3,500.05 earlier in the session. Meanwhile, US gold futures settled 0.
2 per cent lower at US$3,419.40."Comments (of the US Treasury Secretary) this afternoon that hinted towards a possible thaw in the trade war with China, was really when (gold) started to sell off," said Bob Haberkorn, senior market strategist at RJO Futures.
Bessent said Tuesday that he believes there will be a de-escalation in US-China trade tensions, though he described the future negotiations with Beijing as a "slog" that has yet to begin.US stocks jumped more than two per cent, and the dollar rebounded, buoyed by Bessent's comments, after he called the tariff standoff unsustainable.The dollar index rose 0.
7 per cent against its rivals, making bullion more expensive for holders of other currencies."Rallies in the stock market and the US dollar index today are negative for the gold market," said Jim Wyckoff, senior analyst at Kitco Metals.Meanwhile, spot gold, up 29 per cent so far this year, notched its 28th record high on Tuesday as it surged to the US$3,500-per-ounce mark for the first time.
JPMorgan expects the rally to continue, projecting that gold will surpass US$4,000 an ounce next year amid rising recession risks, higher US tariffs, and persistent US-China trade tensions, the bank said in a note on Tuesday.Traders will also be watching speeches by several Federal Reserve officials later this week, hoping for insights into future monetary policy amid concerns about the central bank's independence.Non-yielding gold acts as a hedge against global uncertainty and inflation and tends to thrive in a low-interest-rate environment.
Gold's relative strength index (RSI) stands at 74, indicating that the metal is overbought.Spot silver fell 0.7 per cent to US$32.
47 an ounce, platinum was down 0.8 per cent at US$953.64, and palladium jumped 0.
6 per cent to US$932.75.© New Straits Times Press (M) Bhd.
