Core Viewpoint - Gold prices have experienced volatility, with a recent decline below $4,000 per ounce due to progress in US-China trade talks, which has reduced demand for safe-haven assets [1][2]. Group 1: Market Performance - Gold prices rebounded by 0.9% on Tuesday after a 3.2% drop the previous session, as US and China negotiators reported agreements on tariffs and export controls [2]. - Gold has decreased from a record high of over $4,380 per ounce, but remains up more than 50% year-to-date, supported by central bank purchases and investor strategies to avoid sovereign debt [3]. - Spot gold rose to $4,015.35 per ounce, while silver advanced after a significant loss, and platinum edged lower [6]. Group 2: Expert Insights - Analysts from Citigroup predict that gold prices may decline to $3,800 per ounce in the next three months due to the US's shift towards deal-making with China and changing gold-price momentum [5]. - Chris Weston from Pepperstone Group Ltd. noted the difficulty in predicting the bottom of the gold market, suggesting a tactical approach to buying after price dips [4]. - John Reade from the World Gold Council indicated that central bank demand for gold is not as strong as before, and a deeper correction could be beneficial for professional dealers [4]. Group 3: Federal Reserve Context - The Federal Reserve is widely expected to lower interest rates by 25 basis points in its upcoming policy meeting, which could further influence gold demand as higher yields typically reduce interest in non-yielding assets like gold [6]. - The market is also considering potential candidates to succeed Fed Chair Jerome Powell, which may impact future monetary policy and market sentiment [7].

Gold held near a record high, as traders weighed whether the precious metal’s torrid rally had left it vulnerable to pullbacks. Bullion steadied near $4,040 an ounce, about $20 short of Wednesday’s all-time peak. It fell as much as 1% earlier in the session, as technical indicators show gold’s been trading in overbought territory for the past month, likely leading to some profit-taking by investors. Most Read from Bloomberg In a potential hit to gold’s haven demand, US President Donald Trump announced ...

Core Insights - Gold prices have increased following a five-day rally, reaching new records amid a US government shutdown and expectations of Federal Reserve interest-rate cuts due to weak private payrolls data [1][3]. Group 1: Gold Market Dynamics - Bullion is trading near $3,880 an ounce, approximately $15 below its peak, with the government shutdown potentially causing a blackout in essential economic data needed for Fed rate decisions [2]. - The shutdown has delayed the release of non-farm payroll numbers, which may increase pressure on the dollar and lead traders to bet on two more rate cuts by the Fed this year to support a weakening labor market [3]. - Gold has surged 48% this year, on track for its largest annual gain since 1979, driven by central bank purchases and increased holdings in gold-backed exchange-traded funds (ETFs) as the Fed resumed rate cuts [4]. Group 2: ETF Inflows and Demand - Monthly ETF inflows in September were the largest in three years, with notable purchases from Chinese buyers, indicating a resurgence in demand for gold-backed funds after a period of low interest [5]. Group 3: Regulatory Environment - The US Supreme Court's refusal to allow President Trump to remove Fed Governor Lisa Cook may alleviate concerns regarding Fed independence, potentially impacting demand for safe-haven assets like gold [6]. Group 4: Current Market Performance - Spot gold rose 0.5% to $3,884.75 an ounce, while the Bloomberg Dollar Spot Index weakened by 0.1%. Silver also saw a slight increase after reaching a 14-year high [7].