Gold prices climbed nearly 1% in Asian trading on Thursday, recovering after two days of sharp losses. The rebound came as renewed U.S.–China trade tensions boosted demand for safe-haven assets, while investors awaited key U.S. inflation data later this week.
By 06:15 GMT, spot gold rose 0.9% to $4,137.40 an ounce, while U.S. gold futures gained 2% to $4,144.89. The recovery followed a steep 5% drop on Tuesday, which extended into Wednesday, pushing prices to a two-week low of $4,003.39 per ounce.
The earlier decline was driven by profit-taking after recent highs, fueled by optimism that tensions between Washington and Beijing were easing. However, sentiment shifted sharply after a Reuters report revealed that the Trump administration may restrict certain software-based exports to China in response to Beijing’s rare earth export curbs.
This renewed friction reignited fears of a U.S.–China trade conflict, lifting gold’s appeal as a safe-haven investment.
Adding to market uncertainty, Western sanctions on Russia intensified risk sentiment. The U.S. government imposed its first Ukraine-related sanctions of this term, targeting Rosneft and Lukoil, while the European Union announced its 19th sanctions package, banning Russian liquified natural gas (LNG) imports and blacklisting additional ships from Moscow’s so-called “shadow fleet.”
Meanwhile, the U.S. Consumer Price Index (CPI) report for September was delayed until Friday due to the prolonged government shutdown, keeping traders cautious ahead of the Federal Reserve meeting next week.
Expectations that the Fed will cut interest rates again this month and possibly once more later in the year are supporting bullion, as lower rates reduce the opportunity cost of holding non-yielding assets like gold.
Other metals also traded higher on Thursday. Silver futures jumped 2% to $48.63 per ounce, platinum gained 1% to $1,593.60, and copper edged up 0.4% both in London and U.S. markets.
