Gold prices rose on Thursday, snapping a four-day losing streak in Asian trading after the Federal Reserve’s rate cut and a lack of concrete progress in U.S.-China trade talks prompted renewed safe-haven buying.
At 02:51 ET (06:51 GMT), spot gold climbed 1% to $3,967.03 per ounce, while U.S. gold futures edged 0.4% lower to $3,983.10.
The metal had lost ground in each of the past four sessions, hitting its lowest level in three weeks earlier this week as traders booked profits following record highs above $4,300 per ounce and as safe-haven flows moderated.
Fed Cut Offers Temporary Boost; Powell’s Remarks Temper Optimism
As expected, the Federal Reserve reduced interest rates by 25 basis points to a range of 3.75%–4.00%, its third cut of the year.
The move initially pressured the U.S. dollar, providing some relief to non-yielding gold. But momentum faded after Fed Chair Jerome Powell remarked that another reduction in December was “far from a foregone conclusion.”
Powell’s statement dampened expectations for a prolonged easing cycle, limiting the extent of gold’s rally even as lower borrowing costs typically enhance the metal’s appeal.
Trump-Xi Meeting Provides Modest Geopolitical Support
Traders also reacted to developments from Donald Trump’s meeting with Chinese President Xi Jinping in Busan, South Korea, on Wednesday. Trump described the encounter as “amazing,” announcing that the two leaders had agreed to cut U.S. tariffs on Chinese goods to 47% from 57%.
He also revealed that China would resume large-scale purchases of U.S. soybeans and ease restrictions on rare-earth exports.
Still, with few concrete details on issues such as semiconductors and agricultural trade, markets were hesitant to interpret the meeting as a meaningful breakthrough. The uncertainty surrounding trade policy, combined with the Fed’s dovish stance, helped gold rebound from below $3,900 per ounce earlier in the week.
Industrial Metals Mixed; Copper Retreats After Record Run
Across the broader metals complex, performance was uneven as investors weighed the macroeconomic backdrop.
Silver futures fell 0.7% to $47.605 per ounce, while platinum futures gained 0.7% to $1,594.80 per ounce.
In base metals, London Metal Exchange copper futures declined 1.3% to $11,019.20 per ton, while U.S. copper futures eased 0.7% to $5.17 per pound.
Copper had touched an all-time high of $11,200.40 per ton on Wednesday before retreating on profit-taking.
“Copper is rallying due to mounting supply disruptions, most recently Freeport’s declaration of force majeure at its giant Grasberg mine in Indonesia, and the wider risk-on mood ahead of the Trump-Xi meeting,” ING analysts said in a note.