Gold prices stabilized during Asian trading hours on Wednesday, following a steep sell-off earlier in the session. Easing trade tensions between the U.S. and China, along with renewed optimism over potential progress in global negotiations, continued to weigh on safe-haven demand for the metal.
Profit-taking after gold’s record-setting rally earlier in the month also pressured prices, while investors shifted their attention to key U.S. inflation data due later this week.
Spot gold rose 0.1% to $4,127.95 per ounce as of 00:21 ET (04:21 GMT), rebounding modestly after touching an intraday low of $4,003.39. U.S. gold futures advanced 0.9% to $4,144.51 per ounce.
The metal plunged more than 5% on Tuesday—its sharpest daily decline since 2020—after briefly touching all-time highs above $4,381 per ounce earlier this week, fueled by geopolitical jitters and expectations of monetary easing by the U.S. central bank.
Trade optimism tempers safe-haven appeal
The pullback followed comments from U.S. President Donald Trump, who said an upcoming meeting with Chinese President Xi Jinping could produce a “good deal” on trade, though he acknowledged that the talks “may not happen.”
His remarks boosted risk appetite and dampened demand for traditional hedges such as gold.
Sentiment was further buoyed by reports in India’s Mint (newspaper) that Washington and New Delhi were close to finalizing a trade pact that would lower U.S. tariffs on Indian goods to 15–16% from the current 50%. Such a move could reinforce global trade optimism and risk appetite.
“The catalyst appears to be profit-taking in a market that has been hugely overbought in recent weeks,” analysts at ING Group wrote, adding that “clearly, market participants were getting increasingly nervous over the sustainability of the uptrend.”
Market participants remained cautious ahead of Friday’s U.S. CPI release, which could shape expectations for the Federal Reserve’s interest rate decision next week. Uncertainty stemming from the ongoing U.S. government shutdown has also disrupted parts of the economic data calendar.
Metals trade remains muted after losses
Other precious and industrial metals also came under pressure earlier in the week and were trading in narrow ranges on Wednesday.
Silver inched up 0.4% to $48.93 per ounce after a 7% plunge in the prior session. Silver futures climbed 1.2% to $48.28. Platinum futures slipped 0.3% to $1,533.90.
Benchmark copper on the London Metal Exchange held steady at $10,612.95 per ton, while U.S. copper futures edged up 0.2% to $4.96 per pound.
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