Gold prices steady near 3-wk lows ahead of Fed decision; trade optimism weighs Author Ayushman Ojha Commodities

Gold prices held near three-week lows in Asian trading on Wednesday, pressured by signs of easing trade tensions, while market participants looked forward to an expected Federal Reserve rate cut later in the day.

Spot gold edged up 0.2 % to $3,957.42 per ounce as of 01:40 ET (05:40 GMT), while U.S. Gold Futures edged down 0.1% to $3,977.76.

The yellow metal slipped sharply in the last two days, reaching its lowest level since early October.

Fed decision on tap; Trump’s Asia visit in focus

The Fed’s two-day policy meeting, which began on Tuesday, is widely anticipated to culminate later in the day with a 25-basis­-point rate cut.

While lower interest rates normally support gold, investors are placing particular weight on the forward guidance from policymakers.

If Fed Chair Jerome Powell signals that further cuts may be delayed or inflation remains a concern, higher real yields or a firmer dollar could dampen gold’s appeal.

Gold has been pressured by positive developments in U.S.-China trade. A framework agreement between Beijing and Washington over tariffs and rare-earth export controls has raised hopes of a thaw.

Additionally, U.S. President Donald Trump said he expects to cut the 20 % tariff on Chinese imports tied to fentanyl precursor chemicals ahead of his scheduled summit with Xi Jinping in South Korea on Thursday.

After a visit to Tokyo, Trump arrived in South Korea on Wednesday for a summit in Gyeongju with South Korean President Lee Jae‑Myung.