Gold prices climbed on Thursday in Asian trading, recovering part of their sharp losses from earlier in the week as renewed geopolitical tensions — particularly between the U.S. and China — bolstered demand for safe-haven assets ahead of key U.S. inflation data.
Spot gold rose 0.9% to $4,137.40 an ounce by 06:15 GMT, while U.S. gold futures advanced 2% to $4,144.89. The metal had plunged more than 5% on Tuesday and slipped further on Wednesday, touching a two-week low of $4,003.39 per ounce.
The decline earlier in the week came as traders locked in profits at recent highs, encouraged by optimism that trade relations between Washington and Beijing were stabilizing.
Renewed trade friction drives buying
Sentiment shifted sharply after a Reuters report revealed that the Trump administration was weighing new export restrictions on a wide range of software-powered products bound for China. The move is seen as a response to Beijing’s latest limits on rare earth exports.
Fears of a renewed escalation in the trade conflict between the world’s two largest economies pushed investors back into gold.
Meanwhile, additional geopolitical risk came from new Western sanctions targeting Rosneft and Lukoil. Washington imposed fresh Ukraine-related measures on the Russian oil giants, and the European Union approved its 19th sanctions package, which includes a ban on Russian LNG imports and the blacklisting of more tankers in its “shadow fleet.”
CPI data now in focus
The next key catalyst for gold will likely be the U.S. Consumer Price Index for September, which will be released on Friday after being delayed by the extended government shutdown.
Markets are looking to the data for clues on the Federal Reserve’s policy outlook ahead of next week’s meeting. Expectations for further rate cuts this year have helped limit the downside for bullion, as lower rates typically boost the appeal of non-yielding assets like gold.
Silver leads broader metals rebound
The rally in gold was echoed across other precious and base metals, helped by a relatively stable U.S. dollar. Silver futures jumped 2% to $48.632 per ounce, while platinum rose 1% to $1,593.60 an ounce.
On the industrial side, benchmark copper futures on the London Metal Exchange gained 0.4% to $10,712.20 per metric ton, and U.S. copper futures increased by 0.4% to $5.03 per pound.