Gold prices climbed nearly 2% on Wednesday, rebounding from a three-week low as traders covered short positions ahead of the U.S. Federal Reserve’s policy decision and Chair Jerome Powell’s remarks.
📈 Spot gold rose 1.4% to $4,005.28/oz, while U.S. gold futures gained 1% to $4,020.70/oz. Analysts expect the Fed to cut rates by 25 basis points, following softer inflation data and signs of labor market weakness.
“Speculative shorts are covering ahead of the Fed’s decision,” said Peter Grant, Senior Metals Strategist at Zaner Metals, adding that investors will focus closely on Powell’s comments regarding future policy direction.
Gold, which thrives in low-rate environments, has gained 52% year-to-date, supported by central bank buying, economic uncertainty, and rate-cut expectations. Prices hit a record $4,381.21/oz on Oct. 20, before easing on improved U.S.–China trade sentiment.
Grant noted that while the pullback makes a $5,000/oz target unlikely this year, prices could still reach that level by early 2026.
Meanwhile, silver rose 2.6% to $48.25/oz, platinum gained 0.9% to $1,597.87/oz, and palladium added 1.9% to $1,419.46/oz.