Major stock indexes rallied, the dollar gained against the euro and other currencies while safe-haven gold dropped on Wednesday as the Trump administration signalled a willingness to de-escalate its trade war with China.

Gold fell for a second day after US president Donald Trump’s remarks on China and the Federal Reserve eased some market jitters that have fueled a surge in the precious metal.

Investors have been buying gold as President Donald Trump's trade policies and threats against the Fed have shaken confidence in the U.S. economy.

As gold prices keep hitting record highs, Jefferies analysts said shares of companies that mine the precious metal could still have room to rise.

Gold bars of various sizes lie in a safe on a table at the precious ... More metal dealer Pro Aurum. Photo: Sven Hoppe/dpa (Photo by Sven Hoppe/picture alliance via ) Let’s cut to it: Gold’s been on a tear,

Gold fell more than 1% on Tuesday after briefly touching a record high of $3,500 earlier in the session, as comments by U.S. Treasury Secretary Scott Bessent hinting at a thaw in U.S.-China trade tensions fueled optimism in equities and strengthened the dollar.