Gold Prices Stabilize After Sharp Sell-Off as Trade Tensions Ease
Gold prices steadied in Asian trading on Wednesday, recovering slightly after a steep sell-off earlier in the session. The rebound came as easing U.S.-China trade tensions and signs of progress in global trade talks reduced demand for the metal’s safe-haven appeal.
Investors also took profits following a strong rally earlier this month, while attention shifted to upcoming U.S. inflation data, expected later this week.
As of 00:21 ET (04:21 GMT), spot gold was up 0.1% at $4,127.95 per ounce, after falling as low as $4,003.39/oz earlier in the day. U.S. gold futures rose 0.9% to $4,144.51/oz.
Gold plunged more than 5% on Tuesday, marking its sharpest one-day drop since 2020. Prices had previously surged to record highs of $4,381.21/oz earlier this week, driven by geopolitical uncertainty and expectations of Federal Reserve monetary easing.
Gold Holds Losses as Trade Optimism Rises
The pullback followed comments from U.S. President Donald Trump, who said his upcoming meeting with Chinese President Xi Jinping could produce a “good deal” on trade, though he cautioned that the talks “may not happen.” His remarks boosted market sentiment and reduced appetite for safe-haven assets like gold.
Adding to the optimism, India’s Mint newspaper reported that Washington and New Delhi were nearing a trade deal that would lower U.S. tariffs on Indian goods from 50% to about 15–16%. The news strengthened global risk appetite and further weighed on bullion.
Analysts at ING said that recent declines were likely driven by profit-taking after weeks of strong gains, adding that the market had become “hugely overbought” and investors were growing “nervous about the sustainability of the uptrend.”
Investors are now watching the upcoming U.S. consumer price index (CPI) report due Friday for clues on inflation trends and the Federal Reserve’s next interest rate decision. Meanwhile, the ongoing U.S. government shutdown has added uncertainty, disrupting parts of the economic data calendar.
Metal Markets Stay Subdued After Heavy Losses
Other precious and industrial metals also traded in narrow ranges after sharp declines earlier in the week.
Silver prices rose 0.4% to $48.93/oz after tumbling more than 7% in the previous session. Silver futures gained 1.2% to $48.28/oz, while platinum futures fell 0.3% to $1,533.90/oz.
Copper prices were steady, with London Metal Exchange futures flat at $10,612.95 per ton and U.S. copper futures edging up 0.2% to $4.96 per pound.
