Gold Prices Rebound From Weekly Low as Fed Minutes Approach
Gold prices moved higher on Wednesday, recovering from a one-week low recorded in the previous session. Investors are now looking ahead to fresh signals on the Federal Reserve’s monetary policy outlook.
At 08:25 ET (13:25 GMT), spot gold climbed 1.7% to $4,959.07 per ounce. U.S. gold futures gained 1.5% to $4,980.24 per ounce.
The precious metal had fallen more than 2% on Tuesday as risk appetite improved following signs of progress in U.S.–Iran negotiations.
U.S.–Iran Talks Reduce Safe-Haven Demand
Diplomatic discussions between the United States and Iran advanced, with both sides reaching an understanding on key “guiding principles.” The progress increased hopes for a potential breakthrough and reduced demand for gold as a safe-haven asset.
Gold’s earlier decline was also pressured by a stronger U.S. dollar. A firmer dollar makes gold more expensive for holders of other currencies, typically weighing on prices. In addition, expectations for early U.S. interest rate cuts have faded, adding further downside pressure.
The U.S. Dollar Index edged slightly higher on Wednesday after gaining 0.3% in the previous session.
According to analysts, recent weakness in gold appears corrective rather than a change in trend. Ongoing macroeconomic uncertainty and normalizing liquidity in Asian markets could provide stronger underlying support. Analysts suggest that further price dips may attract renewed buying interest.
Fed Minutes and PCE Inflation Data in Focus
Investors remain cautious ahead of the release of minutes from the Federal Reserve’s January meeting later in the session. The report could offer fresh insight into the timing and scale of potential interest rate cuts.
Market participants are also awaiting Friday’s U.S. personal consumption expenditures (PCE) price index report. The PCE is the Federal Reserve’s preferred measure of inflation and plays a key role in shaping interest rate expectations.
Higher interest rates typically weigh on non-yielding assets such as gold. In contrast, expectations of monetary easing tend to support gold prices.
Silver, Platinum, and Copper Also Advance
Other metals posted strong gains on Wednesday.
Silver prices surged 3.9% to $75.418 per ounce, while platinum rose 3% to $2,079.10 per ounce.
Industrial metals also strengthened. Benchmark copper futures on the London Metal Exchange climbed 1.6% to $12,790.20 per ton. U.S. copper futures advanced 1.7% to $5.7368 per pound.
