Gold prices climbed on Wednesday as investors took advantage of lower prices following a recent decline, while awaiting key insights from the Federal Reserve’s policy meeting minutes and upcoming economic data to gauge the U.S. interest rate trajectory.
Spot gold increased 0.6% to $3,320.58 per ounce by 0853 GMT, rebounding after dipping below the $3,300 mark in the previous session, with a low of $3,285.19. U.S. gold futures mirrored the gain, rising 0.6% to $3,319.50.
“Gold is bouncing back primarily due to bargain hunting after a sharp drop in the last session,” said Jigar Trivedi, senior commodity analyst at Reliance Securities. He added that markets remain cautious ahead of the Fed minutes, resulting in position adjustments.
Traders are keenly awaiting the release of the Federal Reserve’s latest policy meeting minutes, expected later today, along with the U.S. Personal Consumption Expenditures (PCE) data for April, scheduled for Friday. Several Fed officials are also set to speak this week, offering further clues on future monetary policy direction.
“Gold could rally if the PCE data comes in lower than expected, easing concerns about stagflation and increasing the likelihood of additional Fed rate cuts,” said Han Tan, chief market analyst at Exinity Group.
New York Federal Reserve President John Williams emphasized on Wednesday that central banks must respond decisively when inflation diverges from targets.
Since December, the Fed has maintained its policy rate between 4.25% and 4.50%, waiting for clearer economic signals amid market volatility partly fueled by President Donald Trump’s unpredictable comments on trade negotiations.
“Gold may eventually break free from the $3,000-$3,500 range once the Fed signals a stronger commitment to restarting rate cuts,” Tan noted.
Meanwhile, other precious metals showed modest gains, with spot silver up 0.1% at $33.34 per ounce, platinum rising 0.8% to $1,087.97, and palladium increasing 0.1% to $979.57.
