Stock market today: Dow, S&P 500, Nasdaq flutter as investors eye earnings flood from GM, Netflix

Precious metals fell through the early hours of Tuesday’s trading session after President Trump signaled that he is willing to work with China on a trade deal.

Futures on gold (GC=F) lost roughly 2.8%, falling back below $4,300 per troy ounce, while silver (SI=F) and platinum (PL=F) futures both fell by more than 5%.

“I think we’re going to end up having a fantastic deal with China,” Trump said in comments Monday night, after signing a separate deal with Australian Prime Minister Anthony Albanese on critical mineral access. “It’s going to be a great trade deal. It’s going to be fantastic for both countries, and it’s going to be fantastic for the entire world.”

Capital.com senior market analyst Daniela Hathorn noted Tuesday morning that signals of progress in what has become a tit-for-tat trade war between Washington and Beijing seemed to put investors at ease

“The confirmation of willingness to resolve the issues has been enough to remove some of the risk premia in markets, at least for now,” Hathorn wrote.

Precious metals have spent the last few months on a near-historic bull run that saw gold cross $4,000 for the first time and silver cross $50 for the first time since a market panic in the 1980s. Given how quickly the metals have run up, Hathorn said, the market was likely due for a correction.

“The trade had become quite overcrowded and was running a little hot considering the levels both markets were at, so a reversal is not entirely out of the blue,” Hathorn wrote.

However, “The fundamentals haven’t changed, with long-term support still in place.”