Gold Prices Edge Higher but Remain Pressured by Fed Uncertainty and Easing Trade Tensions
Gold prices moved slightly higher in Asian trading on Monday, recovering modestly after two consecutive weekly losses. However, the precious metal remained under pressure as investors weighed uncertainty over U.S. interest rate cuts and signs of easing global trade tensions, both of which reduced demand for safe-haven assets.
Spot gold rose 0.4% to $4,017.13 per ounce by 01:19 ET (06:19 GMT), while U.S. gold futures climbed 0.8% to $4,027.55. Despite last week’s 2% drop, marking a second straight weekly decline, gold still managed to post a 4% gain for October.
Fed Caution and Trade Relief Limit Gold’s Upside
Gold’s limited rebound came even after the Federal Reserve cut interest rates by 25 basis points last week — a move that typically supports non-yielding assets like gold.
However, Fed Chair Jerome Powell struck a cautious tone, warning that further rate cuts were “not a foregone conclusion.” Similar comments from other Fed officials led markets to scale back expectations for another reduction in December. That sentiment lifted the U.S. dollar and put fresh pressure on bullion prices.
The U.S. Dollar Index hovered near a three-month high on Monday, making gold more expensive for overseas buyers and curbing short-term demand.
At the same time, optimism surrounding U.S.–China trade relations added to gold’s headwinds. A closely watched meeting between President Donald Trump and Chinese President Xi Jinping in Busan concluded with both sides agreeing to reduce trade barriers.
The discussions reportedly included a framework for U.S. tariff reductions and Chinese commitments to increase imports of American goods. While not a full trade agreement, the truce helped calm markets and reduced safe-haven buying of gold.
Other Precious Metals Rise; Copper Stays Flat on Weak China Data
Elsewhere in the metals market, silver and platinum outperformed gold, while industrial metals were weighed down by weak Chinese factory data.
Silver futures jumped 1.1% to $48.705 per ounce, and platinum futures gained 1.8% to $1,603.60 per ounce.
Copper prices were largely flat, with London Metal Exchange benchmark copper trading at $10,903.20 per ton and U.S. copper futures edging down 0.1% to $5.11 per pound.
A private survey released Monday showed that China’s manufacturing sector expanded more slowly than expected in October, as falling prices and a weaker economic outlook dampened factory activity.
