Gold prices rebounded in Asian trading on Thursday, halting a four-session slide after the Federal Reserve’s quarter-point rate cut and a Trump–Xi meeting reignited investor interest in the safe-haven metal.
Spot gold rose 1% to $3,967.03 per ounce by 02:51 ET (06:51 GMT), while U.S. gold futures dipped 0.4% to $3,983.10. The metal had fallen to a three-week low earlier this week after retreating from record highs above $4,300 per ounce, as profit-taking and softer risk sentiment dampened demand.
The Fed’s decision to trim rates to 3.75%–4.00% briefly weighed on the dollar, providing short-term support to gold. However, Fed Chair Jerome Powell’s cautious comments—suggesting that another cut in December was “far from a foregone conclusion”—limited the metal’s upside momentum.
“Markets were hoping for a clearer dovish signal,” analysts at ING said, noting that investors may stay defensive until stronger cues emerge from U.S. economic data.
Trump–Xi Meeting Fails to Deliver Breakthrough
Geopolitical factors also influenced the day’s trading tone. Former U.S. President Donald Trump met with Chinese President Xi Jinping in Busan, South Korea, describing the talks as “amazing” while announcing a reduction in U.S. tariffs on Chinese goods from 57% to 47%.
Trump said China had agreed to resume major purchases of U.S. soybeans and ease restrictions on rare earth exports, both of which were viewed as modest steps toward thawing trade tensions.
However, markets remained cautious:
- No firm details emerged on long-standing disputes involving semiconductors and agricultural exports.
- Investors awaited clearer commitments before pricing in any sustained trade progress.
This lack of clarity—combined with the Fed’s restrained policy tone—kept safe-haven demand for gold steady, lifting it from lows near $3,900/oz earlier in the week.
Mixed Performance in Broader Metal Markets
The wider metals market saw divergent trends as traders balanced optimism over trade talks against lingering macroeconomic uncertainties.
- Silver futures slipped 0.7% to $47.605 per ounce.
- Platinum rose 0.7% to $1,594.80 per ounce.
- Copper futures on the London Metal Exchange dropped 1.3% to $11,019.20 per ton, after hitting a record $11,200.40 on Wednesday.
Analysts at ING attributed copper’s volatility to “mounting supply disruptions,” citing Freeport’s force majeure declaration at Indonesia’s Grasberg mine, one of the world’s largest copper producers.
While gold regained ground, traders remained watchful of upcoming U.S. economic data and further Fed commentary for signs of whether the rally can sustain beyond short-term technical recovery.