Gold prices recovered in Asian trading on Wednesday, rebounding after a drop of more than 2% in the previous session as investors moved to buy on weakness. Market participants are also awaiting further guidance on the Federal Reserve’s policy outlook.
Spot gold climbed 1.2% to $4,934.16 per ounce by 00:58 ET (05:58 GMT), while U.S. gold futures rose 1% to $4,954.91 per ounce.
Trading activity in Asia remained subdued, with several major markets closed for the Lunar New Year holiday, keeping volumes light and limiting broader volatility.
The precious metal had fallen sharply on Tuesday as improving risk sentiment—driven by indications of progress in U.S.–Iran negotiations—reduced demand for traditional safe-haven assets.
Progress in US-Iran talks; Fed minutes awaited
Reports indicated that Washington and Tehran had agreed on key “guiding principles” for continued discussions, boosting optimism about a diplomatic breakthrough and weighing on bullion’s appeal.
Gold’s earlier losses were exacerbated by a stronger U.S. dollar, which makes the metal more expensive for buyers using other currencies, as well as fading expectations for imminent U.S. interest-rate cuts.
The U.S. Dollar Index edged up 0.1% during Asian hours, following a 0.3% gain in the prior session.
Investors are now looking ahead to the release of minutes from the Federal Reserve’s January meeting later in the day, which may shed light on the timing and scope of any future monetary easing.
Attention is also centered on Friday’s U.S. personal consumption expenditures (PCE) price index for December, the Fed’s preferred inflation measure, which could influence expectations around interest rates.
Higher borrowing costs typically pressure non-yielding assets such as gold, while expectations of lower rates tend to provide support.
Broader metals rally; silver jumps
Elsewhere in the metals complex, prices also advanced.
Silver surged nearly 3% to $75.77 per ounce, and platinum gained 2% to $2,060.60 per ounce.
On the London Metal Exchange, benchmark copper futures rose 1% to $12,705.20 per ton, while U.S. copper futures added 0.3% to $5.69 per pound.
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