Gold steadied in Asian trading on Wednesday after suffering its steepest single-day decline since 2020, as improving U.S.–China trade sentiment reduced safe-haven appetite.
Spot gold edged 0.1% higher to $4,127.95 per ounce after briefly plunging as low as $4,003.39. U.S. gold futures rose 0.9% to $4,144.51. Earlier this week, the metal had surged to a fresh record peak of $4,381.21 amid geopolitical uncertainty and growing expectations of U.S. interest-rate cuts.
The sell-off came after U.S. President Donald Trump signaled optimism ahead of his upcoming meeting with Chinese President Xi Jinping, suggesting a “good deal” could be reached on trade. Reports that Washington and New Delhi are close to finalizing tariff-cutting agreements also helped lift global sentiment.
Analysts at ING attributed the sharp drop to profit-taking in an “overbought market,” with traders turning cautious before Friday’s U.S. CPI release — a key data point that may influence the Federal Reserve’s policy decision next week.
Other precious metals were muted: silver gained 0.4%, platinum slipped 0.3%, and copper traded flat as volumes eased following Tuesday’s sharp volatility.