Gold prices rebounded in Asian trading on Thursday, marking an end to a four-day losing streak. Spot gold increased by 1% to $3,967.03 an ounce at 02:51 ET (06:51 GMT), while U.S. Gold Futures dipped 0.4% to $3,983.10.
The metal had fallen for four consecutive sessions, hitting a three-week low earlier this week, driven by profit-taking and reduced safe-haven demand after reaching record highs above $4,300/oz last week.
The Federal Reserve's decision to cut its benchmark rate by a quarter point to a range of 3.75%-4.00% initially pressured the dollar and supported gold. However, Fed Chair Jerome Powell's remarks indicated that further cuts were not assured, tempering trader optimism and limiting gold's potential gains.
On the geopolitical front, President Trump and President Xi's meeting in Busan, South Korea, lacked significant breakthroughs. Trump mentioned an agreement to reduce U.S. tariffs on Chinese goods from 57% to 47% and announced China's plans to resume large purchases of U.S. soybeans and relax restrictions on rare-earth exports. However, the absence of detailed agreements on critical issues left markets cautious.
The uncertainty surrounding trade policy, combined with the Fed's dovish stance, helped lift gold prices from recent lows below $3,900/oz.
In the broader metal markets, other precious and industrial metals showed mixed performance. Silver Futures fell 0.7% to $47.605 per ounce, while Platinum Futures increased by 0.7% to $1,594.80/oz. Copper Futures also declined, with benchmark prices on the London Metal Exchange slipping 1.3% to $11,019.20 a ton, following a record high of $11,200.4/ton earlier this week. Analysts noted that copper's rally was driven by supply disruptions and a risk-on sentiment ahead of the Trump-Xi meeting.