Gold prices moved higher in Asian trading on Thursday, recovering part of their recent sharp losses as renewed friction between Washington and Beijing prompted investors to seek safe-haven assets ahead of key U.S. inflation data.
By 06:15 GMT, spot gold gained 0.9% to $4,137.40 per ounce, while U.S. gold futures advanced 2% to $4,144.89. The rebound comes after bullion tumbled more than 5% on Tuesday and fell further on Wednesday, hitting a two-week low of $4,003.39 an ounce.
The earlier slump had been driven by profit-taking at recent highs, supported by hopes that trade tensions between the U.S. and China were easing.
Trade tensions spark renewed safe-haven buying
Market sentiment shifted midweek after a Reuters report revealed that the Trump administration was considering restrictions on a wide range of software-powered exports to China in response to Beijing’s latest rare earth export curbs.
The prospect of a further escalation in the U.S.–China trade conflict boosted gold’s safe-haven appeal.
Fresh sanctions against Russia also added to geopolitical risk. The U.S. imposed Ukraine-related sanctions on Rosneft and Lukoil on Wednesday, while the European Union approved its 19th package of measures against Moscow, including a ban on Russian LNG imports and new listings of tankers in its “shadow fleet.”
Investors eye delayed U.S. inflation data
Market attention is now turning to Friday’s release of the U.S. Consumer Price Index for September, which was postponed due to the prolonged government shutdown.
The data are expected to guide the Federal Reserve’s next policy decision at its meeting next week. Anticipation of further rate cuts this year has helped stabilize gold, as lower interest rates reduce the opportunity cost of holding non-yielding assets.
Other metals rebound
A broadly steady U.S. dollar also supported other precious and base metals. Silver futures surged 2% to $48.632 per ounce, while platinum futures rose 1% to $1,593.60 per ounce.
Benchmark copper futures on the London Metal Exchange climbed 0.4% to $10,712.20 per metric ton, with U.S. copper futures up 0.4% at $5.03 per pound.
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