Gold Prices Steady After Losing Streak as Markets Eye Fed Cut and Trump-Xi Talks
Gold prices stabilized on Thursday after a prolonged four-session losing streak, as traders digested the latest Federal Reserve rate cut and monitored the outcome of the Trump-Xi trade talks.
At 10:00 ET (14:00 GMT), spot gold rose 1.7% to $3,995.47 per ounce, while U.S. gold futures added 0.3% to $4,008.56 per ounce.
The precious metal had fallen for four straight sessions, touching a three-week low earlier this week. Gold has retreated sharply from last week’s record highs above $4,300 per ounce, weighed by profit-taking and a decline in safe-haven demand.
Powell’s Cautious Tone Caps Gold Gains
The Federal Reserve cut its benchmark rate by 25 basis points to a range of 3.75%–4.00%, in line with market expectations. The decision briefly weakened the U.S. dollar, boosting non-yielding bullion, but gains were limited after Fed Chair Jerome Powell said another rate cut in December was “far from a foregone conclusion.”
Powell’s cautious outlook dampened optimism among traders hoping for a longer rate-cut cycle, which in turn restricted gold’s upside momentum.
Trump-Xi Meeting Provides Modest Support
On the geopolitical front, U.S. President Donald Trump and Chinese President Xi Jinping held an “amazing” meeting in Busan, South Korea, on Wednesday. Trump announced that both sides had agreed to reduce U.S. tariffs on Chinese goods from 57% to 47% and that China would resume purchases of U.S. soybeans and ease rare-earth export restrictions.
However, the meeting concluded without a major breakthrough, as no clear details emerged regarding semiconductor or agricultural trade agreements. The lack of concrete progress left markets cautious but still offered some short-term support for gold, helping it rebound from lows below $3,900 per ounce.
Copper Retreats After Record High
Elsewhere in commodities, precious and industrial metals saw mixed performance as investors weighed multiple macroeconomic developments.
Silver futures gained 0.6% to $48.175 per ounce, while platinum futures slipped 0.5% to $1,593.15 per ounce.
Meanwhile, benchmark copper futures on the London Metal Exchange (LME) fell 1.9% to $10,941.75 per ton, and U.S. copper futures dropped 2.8% to $5.1185 per pound, retreating from Wednesday’s record high of $11,200.4 per ton.
According to ING analysts, copper’s recent rally was driven by supply disruptions, including Freeport’s force majeure declaration at its Grasberg mine in Indonesia, and broader risk-on sentiment ahead of the Trump-Xi meeting. Despite the pullback, copper prices remain up over 25% year-to-date, on track for their best performance since 2017.
