Gold prices rebounded sharply on Wednesday, rising more than 1% to $3,978.71 per ounce, after U.S. President Donald Trump said his meeting with Chinese President Xi Jinping “was a 12 out of 10” and signaled that a trade deal with China would be announced “very soon.”
Trump confirmed that U.S. tariffs on China will be reduced to 47% from 57% and that both sides have agreed to keep rare-earth exports flowing, boosting risk appetite and lifting metals. The positive tone marks a significant shift from recent tensions between the world’s two largest economies.
The move comes after gold fell to a three-week low on Tuesday as declining safe-haven demand and investor attention shifted toward the Federal Reserve’s rate decision later this week. At that time, spot gold slipped 0.4% to $3,964.35 per ounce at 1:45 p.m. EDT, while U.S. gold futures settled 0.9% lower at $3,983.10.
The renewed optimism around U.S.–China ties — including cooperation on supply chains and expectations of a formal trade agreement — has eased geopolitical concerns and boosted global markets. However, with the Fed decision still pending, traders are watching to see whether interest-rate guidance will influence bullion’s next move.
