Gold prices stabilized on Wednesday during the Asian session, pausing after a steep decline earlier in the day as easing U.S.–China trade tensions and hopes for progress in global negotiations reduced the appeal of the metal as a safe-haven asset.
The move came after investors locked in profits from gold’s recent rally, while the market turned its attention to key U.S. inflation data due later this week, which could influence the next interest rate decision from the Federal Reserve.
Spot gold rose 0.1% to $4,127.95 per ounce as of 00:21 ET (04:21 GMT), recovering slightly after dipping to $4,003.39 earlier in the session. U.S. gold futures gained 0.9% to $4,144.51.
Gold slid more than 5% on Tuesday—its sharpest one-day drop since 2020—after hitting a record high of $4,381.21 per ounce earlier in the week, supported by geopolitical concerns and bets on U.S. monetary easing.
Trade headlines shift market sentiment
The downturn followed remarks from U.S. President Donald Trump, who said an upcoming meeting with Chinese President Xi Jinping could lead to a “good deal” on trade, although he admitted the talks “may not happen.”
His comments lifted broader risk sentiment and dampened demand for gold and other traditional hedges.
Risk appetite was further supported by a report from India’s Mint (newspaper) stating that Washington and New Delhi are close to reaching a trade agreement that would lower U.S. tariffs on Indian goods to about 15–16% from the current 50%, a move seen as a potential boost to global trade.
“The catalyst appears to be profit-taking in a market that has been hugely overbought in recent weeks,” analysts at ING Group noted, adding that “clearly, market participants were getting increasingly nervous over the sustainability of the uptrend.”
Caution remained high ahead of Friday’s U.S. CPI data, which could provide crucial signals on the Fed’s monetary policy path. The ongoing U.S. government shutdown has added to the uncertainty, delaying some economic indicators.
Metals trade subdued after sharp declines
Other metals traded in tight ranges after heavy losses earlier in the week.
Silver inched up 0.4% to $48.93 an ounce after tumbling more than 7% in the prior session. Silver futures advanced 1.2% to $48.28, while platinum futures eased 0.3% to $1,533.90.
Benchmark copper on the London Metal Exchange was flat at $10,612.95 per ton, while U.S. copper futures added 0.2% to $4.96 per pound.