Gold Rebounds After Fed Rate Cut and Trump–Xi Meeting
Gold prices rebounded in Asian trading on Thursday, breaking a four-day losing streak as the Federal Reserve’s expected rate cut and cautious optimism following the Trump–Xi meeting lent mild support to bullion.
Spot gold rose 1% to $3,967.03 per ounce by 02:51 ET (06:51 GMT), while U.S. gold futures edged 0.4% lower to $3,983.10. The precious metal had fallen for four consecutive sessions earlier this week, touching a three-week low after retreating from record highs above $4,300 per ounce. The recent drop came amid profit-taking and waning safe-haven demand.
Fed Rate Cut Offers Limited Boost
The Federal Reserve cut its benchmark rate by 25 basis points, setting it between 3.75% and 4.00%, as widely anticipated. The move briefly weakened the U.S. dollar and supported non-yielding assets such as gold.
However, gains were capped after Fed Chair Jerome Powell cautioned that another rate cut in December was “far from a foregone conclusion.” His measured tone cooled expectations of a more aggressive monetary easing cycle, tempering gold’s upside momentum.
Trump–Xi Meeting Provides Modest Trade Support
Geopolitical factors also underpinned sentiment. U.S. President Donald Trump and Chinese President Xi Jinping met in Busan, South Korea, where Trump described the talks as “amazing.” Both sides agreed to lower U.S. tariffs on Chinese goods from 57% to 47%, and China pledged to increase purchases of U.S. soybeans and ease rare-earth export restrictions.
Still, markets noted the absence of concrete details on contentious issues such as semiconductors and agricultural trade, leaving investors cautious. The lack of clarity on trade progress, combined with the Fed’s dovish stance, helped lift gold from recent lows below $3,900 per ounce.
Mixed Performance Across Metal Markets
Elsewhere, precious and base metals saw mixed results on Thursday. Silver futures slipped 0.7% to $47.60 per ounce, while platinum gained 0.7% to $1,594.80 per ounce.
In industrial metals, London Metal Exchange (LME) copper futures dropped 1.3% to $11,019.20 per ton, and U.S. copper futures declined 0.7% to $5.17 per pound after hitting a record $11,200.40 per ton earlier this week.
Analysts at ING attributed copper’s recent rally to global supply disruptions, including Freeport’s force majeure at its Grasberg mine in Indonesia, alongside a broader risk-on mood ahead of the Trump–Xi talks.
