29.10.202502:16:44UTC+00Gold Rises Ahead of Fed Decision

Gold prices experienced an upswing, reaching approximately $3,970 per ounce on Wednesday, momentarily halting their recent downward trend. Market participants have shifted their focus to the anticipated Federal Reserve rate cut scheduled for later in the day. Additionally, traders are closely observing statements from Federal Reserve Chair, Jerome Powell, to glean insights into the future trajectory of monetary policy, as the market already anticipates another rate cut in December.

Concurrently, investors are keeping a close eye on developments in the US-China trade negotiations, which could potentially reduce the demand for gold as a safe-haven asset. Expectations are high that US President Donald Trump and Chinese President Xi Jinping will finalize a framework agreement to prevent further US tariff hikes and to alleviate Chinese restrictions on rare earth exports.

Despite the fluctuations, gold remains on track to achieve its third consecutive monthly increase and has surged by approximately 50% this year. This trend is underpinned by a confluence of factors, including economic and geopolitical uncertainties, robust central bank purchases, and concerns about currency devaluation.