WASHINGTON (dpa-AFX) - Gold prices rebounded on Wednesday after a three-day selloff. Spot gold jumped 1.6 percent to $4,017.10 an ounce after losing more than 4 percent over the previous three sessions. U.S. gold futures were up 1.2 percent at $4,029.29.
Investors are buying the dip ahead of an expected interest-rate cut by the U.S. Federal Reserve later in the day.
The Fed is widely expected to lower interest rates by another quarter point, but traders will be looking to the accompanying statement and Fed Chair Jerome Powell's post-meeting comments for clues about the likelihood of further rate cuts.
CME Group's FedWatch Tool currently indicates a 90.8 percent chance the Fed will lower rates by another quarter point in December.
Geopolitical tensions remain on investors' radar after at least 100 people were killed in strikes across Gaza, including at least 35 children.
U.S. President Donald Trump said Israel 'hit back' after a soldier was 'taken out' but claims 'nothing is going to jeopardize' the ceasefire. He also says Hamas has 'to behave'.
The dollar rose from a one-week low versus major peers amid renewed optimism about a potential trade deal between the U.S. and China.
'I think we're going to have a great meeting with President Xi of China, and a lot of problems are going to be solved,' Trump said en route to South Korea where he is due to meet with his counterpart Xi Jinping.
According to the Wall Street Journal, the leaders may discuss a proposed trade framework that could see Washington reduce tariffs on Chinese goods in exchange for Beijing's commitment to curb exports of fentanyl precursor chemicals.
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