Gold prices rebounded in Asian trading on Thursday, ending a four-session losing streak after the Federal Reserve’s latest rate cut offered some support and geopolitical uncertainty following Donald Trump’s meeting with Xi Jinping lent additional momentum.
By 02:51 ET (06:51 GMT), spot gold was up 1% at $3,967.03 per ounce, while U.S. gold futures slipped 0.4% to $3,983.10.
The precious metal had fallen for four straight sessions earlier this week, touching a three-week low, as investors locked in profits after last week’s surge to record highs above $4,300 per ounce and as safe-haven demand waned.
Fed Cut Lifts Gold, but Powell’s Comments Limit Gains
The Federal Reserve lowered its benchmark rate by 25 basis points, bringing it to a range of 3.75%–4.00%, in line with market expectations.
The move briefly pressured the U.S. dollar and boosted gold, which benefits from lower interest rates since it offers no yield. However, gains were limited after Fed Chair Jerome Powell stated that another rate cut in December was “far from a foregone conclusion.”
Powell’s cautious tone dampened optimism among traders hoping for a more aggressive easing cycle, keeping gold’s upside in check despite the supportive policy shift.
Trump-Xi Talks Offer Little Clarity but Support Sentiment
Geopolitical headlines also influenced trading sentiment. Trump and Xi met on Wednesday in Busan, South Korea, where Trump described the discussion as “amazing” and said both sides had agreed to reduce U.S. tariffs on Chinese goods to 47% from 57%.
He also announced that China would resume major purchases of U.S. soybeans and ease restrictions on rare-earth exports.
However, markets were left wanting more detail. No firm commitments emerged on more contentious issues such as semiconductors and broader agricultural trade. The absence of specifics kept traders cautious, even as the lack of clarity and the Fed’s dovish stance combined to lift gold off its recent lows below $3,900 per ounce.
Mixed Day for Metals; Copper Retreats from Record
Other metals saw mixed performances as investors assessed global macro developments.
Silver futures slipped 0.7% to $47.605 per ounce, while platinum futures gained 0.7% to $1,594.80 per ounce.
In base metals, benchmark copper futures on the London Metal Exchange (LME) fell 1.3% to $11,019.20 per ton, and U.S. copper futures edged 0.7% lower to $5.17 per pound.
Copper had reached a record high of $11,200.40 per ton on the LME during Wednesday’s session.
“Copper is rallying due to mounting supply disruptions, most recently Freeport’s declaration of force majeure at its giant Grasberg mine in Indonesia, and the wider risk-on mood ahead of the Trump-Xi meeting,” ING analysts said in a note.
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