Gold prices dipped below USD3,370 per ounce on Wednesday, extending their retreat from Tuesday’s record high of USD3,500, as investor sentiment improved amid signs of easing geopolitical and monetary tensions.
The pullback followed remarks from U.S. Treasury Secretary Scott Bessent, who expressed confidence that the long-running trade conflict with China would soon de-escalate, describing the current tariff standoff as “unsustainable.” Markets also welcomed a shift in tone from President Donald Trump, who stepped back from threats to remove Federal Reserve chair Jerome Powell after days of criticism over the Fed’s interest rate policy.
Together, the developments have lifted market confidence, diminishing demand for gold’s traditional safe-haven appeal. Despite the recent decline, gold remains up approximately 30 percent year-to-date.
