Gold Rebounds on Fed Rate Cut, Trade Optimism

This rebound snaps a three-day losing streak, during which the precious metal shed almost 10% from its all-time high of $4,381. The recovery is primarily driven by cautious investor repositioning ahead of the Federal Reserve's interest rate decision, where a second consecutive 25-basis-point rate cut is widely anticipated, lowering the target range to 3.75%-4.00%.

While the rate cut is largely priced in, market focus will be on Chair Jerome Powell's press conference and the monetary policy statement for clues on future easing. Softer-than-expected CPI data (0.3% MoM headline, 0.2% MoM core in September) reinforces prospects for further easing.

Additionally, optimism surrounding potential US-China trade progress, with President Trump and President Xi Jinping set to meet, is contributing to the risk-on sentiment. Technically, Gold is attempting to stabilize above $4,000, with immediate resistance at $4,020–$4,050.