Gold prices fell as US-China trade talk hopes reduced demand for safe-haven assets. Investors await the Federal Reserve’s policy meeting for interest rate clues. Learn more about gold, silver, and other metal prices.
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Gold prices went down on Wednesday because people are hopeful about US-China trade talks. This hope made fewer people want gold, which is usually bought when things feel risky. Investors are also waiting for the Federal Reserve’s meeting later today to see what they say about interest rates.
Key Points:
- Spot gold dropped 1.3% to $3,386.36 per ounce after jumping nearly 3% the day before.
- US gold futures fell 0.8% to $3,395.20.
- US officials, including Treasury Secretary Scott Bessent, will meet China’s top economic official in Switzerland this week to talk about trade.
- Last month, the US and China put taxes on each other’s goods, starting a trade war that worried people about the global economy.
- President Trump said he’ll look at trade deals in the next two weeks to decide which ones to accept.
- The Federal Reserve is expected to keep interest rates at 4.25%-4.50% today.
- Investors are listening for hints from Fed Chair Jerome Powell about when interest rates might go down.
- Gold does well when interest rates are low because it’s seen as a safe investment.
- Other metals also fell: silver by 0.6% to $33.03, platinum by 0.4% to $980.95, and palladium by 0.5% to $969.75.
