Gold prices were largely steady in Asian trading on Wednesday as markets braced for the Federal Reserve’s policy decision amid heightened uncertainty over U.S. trade policies under President Donald Trump’s administration.
Spot Gold was muted at $2,762.64 per ounce, while Gold Futures expiring in February inched 0.1% higher to $2,796.06 an ounce by 01:22 ET (06:22 GMT).
Fed meet, Trump tariff concerns, China holiday lead to muted bullion
Investors remained cautious ahead of the Fed’s two-day meeting conclusion, where policymakers are widely expected to hold interest rates steady but may offer critical insights into inflation risks and the timeline for potential rate cuts in 2025.
Trump’s renewed push for aggressive tariffs on imports—including steel, aluminum, and pharmaceuticals—has amplified concerns about inflationary pressures and trade war escalation.
Trump is still expected to implement a 25% tariff on imports from Canada and Mexico starting February 1, with potential additional tariffs on Chinese goods.
Analysts also attributed the marginal moves to the Lunar New Year holiday in China.
They believe that if the Fed strikes a dovish tone, gold could reach new record peaks, aided by the safe-haven demand amid tariff uncertainty.
Lower interest rates bode well for golf prices, as it makes the yellow metal more attractive compared to interest-bearing assets.
The US Dollar Index inched 0.1% lower in Asian trading on Wednesday, after jumping 0.5% on Tuesday.
Other precious metals were also muted on Wednesday. Platinum futures were unchanged at $958.25 an ounce, while Silver Futures were steady at $30.848 an ounce.
Copper falls further as industrial metals decline amid tariff threats
Copper prices retreated further on Wednesday as markets grappled with Trump’s proposed import tariffs on industrial metals.
“Tariff threats are unlikely to help sentiment with reports that President Trump is set to impose tariffs on steel, aluminium and copper imports,” ING analysts said in a note.
Meanwhile, China’s weakening factory activity and property sector woes further cloud the demand outlook, with January manufacturing contracting after three months of expansion.
Benchmark Copper Futures on the London Metal Exchange inched 0.3% lower to $8,995.90 a ton, while February Copper Futures fell 0.7% to $4.2197 a pound.
