Gold Shines Again as Markets Brace for Fed’s Next Rate Cut

Gold prices edged higher on Wednesday, reclaiming ground lost earlier in the week as global investors shifted focus to the U.S. Federal Reserve’s widely anticipated interest rate decision. The yellow metal traded just below the key $4,000 mark per ounce, recovering from a recent three-week low as traders adopted a more cautious stance ahead of the policy announcement.

The rebound marks a pause in gold’s three-day losing streak, which saw prices retreat nearly 10% from last week’s record highs. The earlier decline was largely tied to renewed optimism over U.S.–China trade progress, prompting investors to move toward riskier assets. However, with the Fed now in the spotlight, safe-haven demand is once again showing signs of strength.

Markets overwhelmingly expect the central bank to deliver its second consecutive quarter-point rate cut, bringing the benchmark range down to around 3.75%–4.00%. The move follows September’s pre-emptive cut, which aimed to buffer the economy against slowing job growth and lingering inflation pressures. Yet the bigger question lies beyond today’s decision—whether policymakers will signal further easing in December or adopt a wait-and-see approach.

Investors will be parsing every word of the Fed’s policy statement and the press conference that follows for clues about the bank’s next steps. A clear indication of a continued easing cycle could give gold further lift, while a more cautious tone may limit its upside momentum.

In broader markets, the dollar and U.S. Treasury yields traded unevenly as traders positioned for potential volatility. Meanwhile, economic visibility remains clouded by a partial government shutdown, which has restricted the release of key labor data. Early private-sector estimates, however, suggest modest job gains through October, while the latest inflation figures show price pressures remaining contained.

Beyond the Fed’s decision, attention is also turning to geopolitics. Hopes are building ahead of a scheduled meeting between U.S. and Chinese leaders on Thursday during the APEC Summit in South Korea, where discussions could mark a turning point in the long-running trade tensions between the two nations.



As the world’s most closely watched central bank prepares to make its move, the stakes are high for both the dollar and gold. Whether the Fed signals confidence in the economy—or caution about its resilience—will likely define the next chapter in the precious metal’s volatile journey.