Gold tops US$4,000 again after Fed rate cut and trade deal doubts

SEATTLE (Scrap Monster): Gold prices climbed nearly 2% on Thursday following the US Federal Reserve’s decision to cut interest rates, while investors grew cautious over the uncertain outlook of a US–China trade deal.

Spot gold advanced 1.9% to US$4,003.62 per ounce by 1.39pm ET (1739 GMT), and December gold futures inched up 0.4% to US$4,015.9 per ounce.

US President Donald Trump announced he would reduce tariffs on Chinese imports to 47% from 57% in return for Beijing’s commitments to resume purchases of American soybeans, restore rare earth exports, and crack down on illicit fentanyl trade.

“Gold dipped slightly earlier, but as more details of the so-called trade truce emerged, it became clear the deal lacked substance. Markets quickly pulled back any optimism that the trade conflict was nearing an end,” said Jeffrey Christian, managing partner at CPM Group.

Equity markets slipped amid concerns that the ceasefire could be short-lived.

The Federal Reserve’s rate cut on Wednesday met expectations, but officials hinted it could be the last reduction this year as the government shutdown risks delaying crucial economic data.

Lower interest rates tend to support non-yielding assets like gold, which also benefits during periods of geopolitical and economic uncertainty.

Reflecting growing investor confidence in the metal, the Wells Fargo Investment Institute raised its 2026 year-end forecast for gold to US$4,500–4,700 per ounce, up from US$3,900–4,100, citing global tensions and uncertain trade policies.

“These lingering uncertainties should continue to underpin both private and official demand for gold,” analysts noted.

Among other precious metals, spot silver surged 2.7% to US$48.81, platinum rose 1.2% to US$1,604.38, and palladium jumped 3.4% to US$1,447.08.

Courtesy: www.reuters.com