Gold prices traded steady but near recent lows on Wednesday in Asia, as easing trade tensions and expectations of a Federal Reserve interest rate cut later in the day kept investors cautious.
At 01:40 ET (05:40 GMT), spot gold inched up 0.2% to $3,957.42 per ounce, while U.S. gold futures slipped 0.1% to $3,977.76. The metal has fallen sharply over the past two sessions, hitting its weakest level since early October.
Fed policy meeting in focus; Trump’s Asia tour draws attention
The Federal Reserve is set to conclude its two-day policy meeting later Wednesday, with markets widely expecting a 25-basis-point rate cut.
Although rate cuts typically support non-yielding assets like gold, investors are more focused on the central bank’s forward guidance. If Fed Chair Jerome Powell signals that future easing could be delayed—or if inflation risks remain elevated—gold could face renewed pressure from rising real yields or a stronger U.S. dollar.
Trade optimism dampens safe-haven demand
Gold’s recent weakness has also been tied to signs of progress in U.S.-China trade relations. Reports of a framework agreement on tariffs and rare-earth export controls have lifted hopes of de-escalation.
Additionally, U.S. President Donald Trump said he expects to reduce the 20% tariff on Chinese imports linked to fentanyl precursor chemicals ahead of his planned summit with Chinese President Xi Jinping in South Korea on Thursday.
Following a stop in Tokyo, Trump arrived in Gyeongju, South Korea, on Wednesday for a meeting with South Korean President Lee Jae Myung.
These developments have reduced market anxiety around trade and geopolitics, softening demand for traditional safe-haven assets such as gold and contributing to the recent pullback from record highs.
Broader metals market remains muted
Trading across the metals complex was subdued ahead of the Fed announcement. Silver futures rose 0.3% to $47.45 per ounce, while platinum futures slipped 0.6% to $1,575.80.
On the industrial side, benchmark copper futures on the London Metal Exchange gained 0.2% to $11,053.20 per ton, and U.S. copper futures were up 0.3% to $5.18 per pound.
Market participants remain on edge as they await the Fed’s comments for clues on the direction of monetary policy, which could determine whether gold continues to drift lower or finds renewed support in the weeks ahead.
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