Gold Rebounds on Anticipated Fed Rate Cut

Spot gold climbed 1.6% to $4,017.52 per ounce, with U.S. Gold Futures gaining 1.2% to $4,031.21. While lower interest rates typically bolster gold's appeal, investors are keenly focused on Fed Chair Jerome Powell's forward guidance, particularly given the U.S. government shutdown's impact on economic data clarity.

Signals of potential delays in future rate cuts or persistent inflation concerns could strengthen the dollar or real yields, thereby dampening gold's attractiveness. Concurrently, positive developments in U.S.-China trade relations, including a framework agreement and discussions on tariff reductions during President Trump's Asian visit, have reduced demand for safe-haven assets, contributing to gold's recent pullback from record highs.

Other precious and industrial metals, including silver, platinum, and copper, also posted modest gains.