Published Wed, May 7, 2025 · 09:29 AM
[BENGALURU] Gold prices fell on Wednesday (May 7) as optimism over potential US-China trade talks weakened demand for safe-haven assets, while investors braced for the Federal Reserve’s policy meeting later in the day.
Spot gold lost 1.3 per cent to US$3,386.36 an ounce as at 0024 GMT. The metal had risen nearly 3 per cent in the previous session.
US gold futures fell 0.8 per cent to US$3,395.20.
US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China’s top economic official in Switzerland this week, US officials said, in what could be the first step towards resolving a trade war disrupting the global economy.
The US and China imposed tit-for-tat tariffs on each other last month, triggering a trade war that fuelled fears of a global recession.
On Tuesday, US President Donald Trump said he and top administration officials will review potential trade deals over the next two weeks to decide which ones to accept.
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The market’s focus will be on the Federal Open Market Committee (FOMC) meeting later in the day, where the US central bank is expected to hold interest rates steady. The Fed has held its policy rate in the 4.25 to 4.5 per cent range since last December.
Fed chair Jerome Powell’s remarks are awaited for clues into the potential timing of future interest rate cuts.
Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low-interest rate environment.
Spot silver eased 0.6 per cent to US$33.03 an ounce, platinum fell 0.4 per cent to US$980.95 and palladium lost 0.5 per cent to US$969.75. REUTERS
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