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Gold prices steadied in Asian trading on Wednesday, recovering slightly from steep overnight losses as easing U.S.-China trade tensions and expectations for progress in global trade talks curbed demand for safe-haven assets.
At 04:21 GMT, spot gold edged 0.1% higher to $4,127.95 per ounce, bouncing from an earlier session low of $4,003.39, while U.S. gold futures rose 0.9% to $4,144.51. The metal plunged more than 5% on Tuesday, its sharpest one-day drop since 2020, after hitting record highs above $4,381/oz earlier this week.
Gold Consolidates After Record Surge
The recent sell-off was largely attributed to profit-taking after a stellar month-long rally fueled by geopolitical uncertainty and Federal Reserve rate-cut expectations. However, a shift in tone from U.S. officials eased global risk aversion and reduced the appeal of gold as a defensive hedge.
President Donald Trump said an upcoming meeting with Chinese President Xi Jinping could yield a “good deal” on trade, while also acknowledging the talks “may not happen.” The comments helped improve market sentiment, prompting a rotation out of safe havens.
Adding to optimism, India’s Mint newspaper reported that Washington and New Delhi were close to finalizing a bilateral trade deal that would cut U.S. tariffs on Indian goods to around 15–16% from 50%, a move expected to boost global risk appetite.
Focus Turns to U.S. CPI and Fed Outlook
Investors are now awaiting U.S. Consumer Price Index (CPI) data due Friday, which could guide expectations for the Federal Reserve’s policy meeting next week. A hotter-than-expected reading could limit the central bank’s scope for near-term rate cuts.
The ongoing U.S. government shutdown, now stretching into a third week, has disrupted parts of the data release calendar, adding to uncertainty in markets.
Other Metals Mixed After Sell-Off
In the broader metals complex, prices traded mostly sideways following Tuesday’s sharp declines.
- Silver rose 0.4% to $48.93/oz after tumbling more than 7% in the prior session, while silver futures advanced 1.2% to $48.28/oz.
- Platinum slipped 0.3% to $1,533.90/oz.
- Copper was largely steady, with LME benchmark futures at $10,612.95 a ton, and U.S. copper futures up 0.2% to $4.96 a pound.
Despite this stabilization, analysts noted that risk sentiment remains fragile, and gold could stay volatile in the short term as traders balance profit-taking, trade optimism, and Fed policy expectations.
