(Bloomberg) -- Gold eased as investors took profits after another record-breaking session, when prices were bolstered by growing optimism over the timing of the next Federal Reserve rate cut and increasing haven demand.

Most Read from Bloomberg

• Trump Targets $128 Billion California High-Speed Rail Project
• Trump Asserts Power Over NYC, Proclaims ‘Long Live the King’
• NYC’s Congestion Pricing Pulls In $48.6 Million in First Month
• NYC to Shut Migrant Center in Former Hotel as Crisis Eases
• As Visitors Discover Ghent, the City Is Trying to Prevent a Tourism Takeover

Bullion fell as much as 0.5% to trade around $20 shy of Monday’s fresh all-time high of $2,956.19 an ounce. Amid mounting concerns over the outlook for the US economy, swap markets now expect the Fed’s next monetary easing to arrive two months earlier than was expected just last week. Lower rates are positive for bullion as it doesn’t pay interest.

Meanwhile, President Donald Trump took aim at China with a series of moves involving investment, trade and other issues that raise the risk ties may worsen between the US and its top economic rival.

Gold has also received a boost from lower Treasury yields after an auction for two-year notes drew record demand. The move added to a rally in government debt, following a soft US business activity print last week. Lower yields also tend to benefit the non-interest paying precious metal.

The shifting views on the Fed’s monetary policy — coupled with uncertainty over Trump’s trade and geopolitical agendas — have sparked renewed interest in bullion-backed exchange-traded funds. Last week, net inflows were the largest since 2022, adding extra juice to gold’s rally of more than 12% so far this year.

“Mounting concerns over President Trump’s disruptive trade and geopolitical agendas are driving strong haven demand,” ANZ Banking Group Ltd. analysts including Brian Martin said in a note. “In recent weeks there has been a discernible increase in physical flows in gold-back exchange traded funds.”  

Looking ahead, investors will be analyzing Friday’s core personal consumption expenditures price index for clues about the central bank’s monetary policy trajectory. The Fed’s preferred inflation gauge is expected to cool to the slowest since June, but glacial progress on taming prices may keep officials cautious.

Spot gold was down 0.5% at $2,937.65 an ounce at 12:18 p.m. in Singapore. The Bloomberg Dollar Spot Index eased 0.1%. Silver was steady, while platinum and palladium dipped. 

--With assistance from Preeti Soni.

Most Read from Bloomberg Businessweek

• Walmart Wants to Be Something for Everyone in a Divided America
• Meet Seven of America’s Top Personal Finance Influencers
• Why Private Equity Is Eyeing Your Nest Egg
• Can Dr. Phil’s Streaming Makeover Find an Audience in the MAGA Era?
• How Med Spas Conquered America

©2025 Bloomberg L.P.