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Gold prices climbed another 1% on Tuesday, as trade uncertainty and declining US bond yields continue to boost the precious metal’s appeal to investors.
Spot gold hit an intraday high of $3,430.41 per ounce in the morning, its highest in five weeks. By 11:30 a.m. ET, it traded at $3,430.41 for a 0.9% gain.
US gold futures also edged 1% higher at $3,441.20 per ounce in New York.
Meanwhile, the yield on benchmark US 10-year notes fell to a near two-week low, making non-yielding bullion more attractive.
With Tuesday’s move, gold is now roughly $70 off its all-time high of $3,500.05 set in late April. So far this year, the yellow metal has risen more than 30% amid uncertainty surrounding the global trade landscape.
Commenting on the recent rally, Jim Wyckoff, a senior analyst at Kitco Metals, said the lingering trade uncertainty “is prompting some safe haven demand.”
“The US has got several trade deals in the works and there’s rumors that the EU and the US might not be able to come to an agreement or certainly are not anywhere close yet,” he told Reuters on Tuesday.
Earlier in the day, Treasury Secretary Scott Bessent said he would meet his Chinese counterpart next week, suggesting a possible extension of the tariff deadline. He added that the US is poised to announce “a rash of trade deals” with other countries.
However, European Union diplomats hinted that the 27-nation bloc is looking to implement broader countermeasures against the US as prospects for a trade agreement dwindle.
Investors are also positioning ahead of next week’s Federal Reserve meeting. While the US central bank is expected to hold rates steady, markets are eyeing a potential rate cut in October. A lower rate would potentially benefit gold further.
(With files from Reuters)