FX.co ★ Gold Pulls Back from Record High

Gold prices fell to below $3,280 per ounce on Tuesday, following a record high of $3,500 the day before. This decline contrasts with gains seen in other dollar-denominated financial assets, which have been buoyed by the potential easing of the trade war between the United States and China. President Trump indicated that current tariff levels would not be sustained and stepped back from previous threats to Federal Reserve autonomy. The prospect of increased trade flow lessened fears that trade barriers and unpredictable economic policies might undermine the perception of U.S. exceptionalism—a view that has led U.S. assets to outperform in recent decades and triggered a shift from U.S. investments to the safety of gold. As a result, gold prices have surged more than 30% since the start of the year, and the gold-to-silver ratio reached its highest level since 1994, barring the pandemic period.