NEWS

Gold prices climbed on Wednesday, supported by a weaker U.S. dollar and opportunistic buying after the sharp sell-off seen in the previous session. Investors are now shifting their focus toward the long-awaited U.S. inflation data for September, which was delayed due to the ongoing government shutdown and is expected to be released on Friday.

Inflation Anticipation and Fed Outlook

Market participants are closely watching the U.S. Consumer Price Index report, as it is expected to offer fresh clues about the Federal Reserve’s path toward potential rate cuts. The data is widely seen as a key driver for the next stage of global market movements, directly influencing the dollar’s trajectory, bond yields, and demand for gold as a traditional safe-haven asset during times of uncertainty.

According to analysts at Point Trader Group, easing trade tensions between the U.S. and China helped revive investor appetite and stabilize the precious metals market following an extended correction phase. After gold’s parabolic rise above the $4,000 per ounce level, a technical pullback was long overdue, and the current rebound suggests that market positioning is becoming more balanced. The analysts added that short-term volatility may persist, but bargain hunting at lower levels is likely to continue supporting prices.

Meanwhile, U.S. President Donald Trump stated that he expects to reach a “fair trade deal” with Chinese President Xi Jinping during their upcoming meeting in South Korea, signaling a potential easing of geopolitical friction. However, traders remain cautious given the lingering uncertainty over sensitive issues such as Taiwan.

Global Trade Developments and Gold’s Long-Term Strength

In related news, India and the United States are reportedly nearing a new trade agreement that would lower U.S. tariffs on Indian imports to around 15–16% from the current 50%. Such a move could bolster global trade sentiment and increase industrial demand for precious metals, including gold and silver.

Despite recent corrections, gold remains one of the strongest-performing assets of the year, up roughly 55% year-to-date after hitting a record high of $4,381.21 per ounce earlier this week. Analysts at Point Trader Group attribute this strength to a combination of geopolitical risks, aggressive central bank gold purchases, and growing expectations of upcoming U.S. interest rate cuts by the Federal Reserve.

Recent Market Performance

On Tuesday, gold futures posted their steepest daily decline since June 2013, falling by 5.7% to close at $4,109.10 per ounce amid profit-taking following the recent surge to all-time highs. However, the metal regained some ground on Wednesday, rising 0.5% to $4,145.35 per ounce as the U.S. dollar index slipped 0.1% against a basket of major currencies, making gold more affordable for holders of other currencies.

U.S. gold futures for December delivery also advanced 1.2% to $4,159.60 per ounce. The market remains in a cautious holding pattern as traders await Friday’s inflation report, which could significantly influence Fed policy expectations and overall market sentiment.

Other Precious Metals

Among other precious metals, spot silver gained 0.5% to $48.95 per ounce, platinum fell 1.1% to $1,534.20, while palladium rose 1.4% to $1,427.13 per ounce. Analysts noted continued volatility across global metal markets, driven by mixed signals of economic recovery and ongoing technical adjustments.

Experts at Point Trader Group concluded that gold remains in a healthy corrective phase and that any additional short-term pullbacks could offer new buying opportunities. With inflation risks persisting and the U.S. dollar showing signs of weakness, gold continues to stand as a key hedge for investors seeking stability amid global financial uncertainty.