Gold prices moved higher during Asian trading on Wednesday, recovering from the prior session’s decline of more than 2% as bargain hunters returned to the market. Investors also remained focused on upcoming signals regarding the Federal Reserve’s policy path.
Spot gold gained 1.2% to $4,934.16 an ounce by 00:58 ET (05:58 GMT), while U.S. Gold Futures rose 1% to $4,954.91 per ounce.
Activity across Asia was subdued, with several key regional markets closed for the Lunar New Year holiday, keeping overall trading volumes light and limiting broader price swings.
The precious metal had fallen sharply on Tuesday as improving risk sentiment—fueled by indications of progress in U.S.–Iran discussions—dampened demand for safe-haven assets.
US-Iran talks advance; Fed minutes in focus
Washington and Tehran reportedly reached agreement on core “guiding principles” for ongoing negotiations, boosting hopes for a diplomatic resolution and weighing on bullion demand.
Gold’s earlier drop was also pressured by a firmer U.S. dollar, which raises the metal’s cost for buyers using other currencies, along with diminishing expectations for near-term U.S. rate cuts.
The U.S. Dollar Index added 0.1% during Asian hours after climbing 0.3% in the previous session.
Traders were positioning cautiously ahead of the release of minutes from the Federal Reserve’s January policy meeting later in the day, which may provide additional clarity on the timing and extent of potential monetary easing.
Attention is also turning to Friday’s U.S. personal consumption expenditures (PCE) price index data for December, the Fed’s preferred inflation measure, which could further influence rate-cut expectations.
Typically, elevated interest rates pressure non-yielding assets such as gold, whereas prospects of looser monetary policy tend to lend support.
Broader metals complex advances; silver surges
Other precious and base metals also posted gains.
Silver climbed nearly 3% to $75.77 per ounce, and platinum advanced 2% to $2,060.60 per ounce.
On the London Metal Exchange, benchmark copper futures rose 1% to $12,705.20 a ton, while U.S. copper futures edged up 0.3% to $5.69 per pound.