Gold Rebounds as Renewed U.S.–China Tensions and Sanctions on Russia Lift Safe-Haven Demand

Gold prices rebounded on Thursday, snapping a two-day losing streak as renewed U.S.–China trade tensions and fresh Western sanctions on Russia revived safe-haven appetite ahead of key U.S. inflation data later this week.

By 06:15 GMT, spot gold rose 0.9% to $4,137.40 per ounce, while U.S. gold futures climbed 2% to $4,144.89, recovering part of the steep 5% drop recorded earlier in the week.

Gold Regains Ground as Trade Risks Return

After a sharp sell-off driven by profit-taking and optimism over easing U.S.–China trade frictions, gold found renewed support following reports that Washington was considering restricting software-powered exports to China. The proposed measures, which include high-tech goods such as laptops and jet engines, were said to be a response to Beijing’s rare earth export restrictions, heightening fears of a deeper trade standoff.

The news revived safe-haven demand, helping bullion retrace part of its losses from earlier in the week, when it briefly touched a two-week low of $4,003.39/oz.

Geopolitical Tensions Add to Support

Adding to the risk-off sentiment, the U.S. imposed its first Ukraine-related sanctions of the term, targeting Russia’s oil majors Rosneft and Lukoil, while the European Union approved its 19th sanctions package. The EU’s measures included a ban on Russian LNG imports and blacklisting of additional tankers from Moscow’s so-called shadow fleet.

These developments underscored persistent global geopolitical risks, bolstering gold’s traditional role as a hedge against uncertainty.

Markets Await U.S. CPI Data

Investors are now focused on the U.S. Consumer Price Index (CPI) report for September, delayed until Friday due to the ongoing government shutdown. The data is expected to offer fresh clues on the Federal Reserve’s next policy move ahead of its meeting next week.

Market expectations remain tilted toward another rate cut this month and potentially a second reduction later in the year — a scenario generally supportive of non-yielding assets like gold.

Other Metals Rebound

The recovery extended to other precious and industrial metals. Silver futures jumped 2% to $48.63/oz, leading gains across the metals complex, while platinum rose 1% to $1,593.60/oz.
On the industrial front, London Metal Exchange copper futures climbed 0.4% to $10,712.20 per ton, and U.S. copper futures gained 0.4% to $5.03 per pound, aided by a broadly steady U.S. dollar.

Overall, traders remain cautious, balancing geopolitical risks and monetary policy expectations, but Thursday’s rebound signaled renewed investor interest in gold as a key hedge amid lingering global uncertainty.