Gold prices fell slowly on Tuesday as investors booked profits after the precious metal hit a new high in the previous session on hopes of further interest rate cuts by the US Federal Reserve and strong demand for safe havens.
Spot gold fell 0.3 percent to $4,340.99 an ounce as of 0456 GMT, after hitting a record high of $4,381.21 on Monday. U.S. gold futures for December were steady at $4,357.80 an ounce.
“Profit-taking and a decline in flows to safe havens combine to keep gold prices just under pressure today… any pullback in gold prices will be seen as buying opportunities as long as the Fed remains on its current rate-cutting trajectory,” said Tim Waterer, chief market analyst at KCM Trade.
According to the CME FedWatch Tool, markets are fully pricing in a Fed rate cut this month and again in December. Gold, a non-yielding asset, tends to do well in a low interest rate environment.
“The current gold rally has more room to rise, provided US CPI data doesn’t deliver any nasty upside surprises later this week,” Waterer said.
The figures, due to be released on Friday after a delay due to the government shutdown, are expected to show the index rose 3.1 percent year-on-year in September, according to economists polled by Reuters.
The US government shutdown lasted into the twentieth day on Monday, after senators failed to break the deadlock for the tenth time last week. White House economic adviser Kevin Hassett said Monday that the shutdown would likely end this week.
The shutdown has delayed the release of key economic data, leaving investors and policymakers in a data vacuum ahead of the Fed’s policy meeting next week.
On the trade front, US Treasury Secretary Scott Bessent is expected to meet Chinese Vice Premier He Lifeng in Malaysia this week to try to prevent an escalation of US tariffs on Chinese goods.
Elsewhere, spot silver fell 1.2 percent to $51.83 an ounce, platinum fell 0.7 percent to $1,627.53 and palladium rose 0.1 percent to $1,497.62.
Published on October 21, 2025
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