(Bloomberg) -- Gold paused its record-breaking rally amid optimism over US-Japan trade talks, after bullion earlier reached another all-time high.
The precious metal slipped by as much as 1.8% after its biggest one-day gain in two years in the prior session, as market sentiment improved amid positive signals from the initial trade talks between the two countries.
President Donald Trump said negotiators made “big progress” in trade talks with Japanese representatives seeking exemptions from the levies slapped on US trading partners. While the talks didn’t result in an immediate halt on tariffs, Japan’s lead negotiator said the countries will speak again soon as they aim to reach a deal within the 90-day grace period.
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Still, uncertainty over Trump’s tariff agenda and the possibility of a global trade war will keep gold well-supported, according to Nicholas Frappell, global head of institutional market at ABC Refinery.
“Uncertainty about the scale and breadth of tariffs, uncertainty over the strategic plan of the US administration, and the degree to which America’s trade partners will respond,” he said.
Gold was down 1.4% at $3,296.78 an ounce at 10:44 a.m. in New York. It touched a record $3,357.78 earlier in the day, and is still on track for a weekly gain of about 2%. The Bloomberg Dollar Spot Index was little changed. Silver, platinum and palladium all fell.
--With assistance from Yihui Xie and Jack Ryan.