October 29, 2025

Get ready for some shiny news! Gold prices have bounced back above a dazzling $4,000 per ounce, thrilling investors worldwide. Why this glow-up? Two big reasons: a weaker US dollar and excitement about possible Federal Reserve rate cuts in the near future. On Tuesday, spot gold climbed 0.7% to $4,009.39 per ounce, recovering from a sharp drop on Monday when prices fell over 3% to the lowest since October 10. Tim Waterer, Chief Market Analyst at KCM Trade, explained the buzz: "Buyers who were waiting on the sidelines for gold are now being tempted into taking positions at these price levels. Also, we are seeing a bit of softness from the dollar, which is giving gold a reprieve." A softer dollar makes gold cheaper for holders of other currencies, adding fuel to the rally. But it’s not just the dollar shaking things up. U.S. and Chinese top economic officials recently worked out a framework for a trade deal that Presidents Donald Trump and Xi Jinping could finalize this week. Trump said, "I thought a deal would be reached with China," while also announcing new trade and critical minerals deals with Southeast Asian nations during his Asia trip. However, Waterer points out, "If Trump and Xi have a productive meeting on trade this week, this could leave gold swimming against the current to some degree. But this could be offset if the Fed delivers a dovish tone with the expected rate cut this week." Investors are now all eyes on Wednesday’s Federal Reserve meet, waiting for Chair Jerome Powell's hints on future rate moves. Meanwhile, the European Central Bank and Bank of Japan are expected to keep their rates steady. This year, gold has been a superstar, soaring about 53% and peaking at an all-time high of $4,381.21 on October 20. Its rise rides on waves of economic and geopolitical troubles, bets on rate cuts, and steady central bank buying. On the flip side, other precious metals aren’t shining as brightly. Spot silver dropped 0.3% to $46.74 per ounce, platinum slipped 1.2% to $1,571.85, and palladium dipped 0.8% to $1,391.15. So while gold basks in the spotlight, its metal cousins are cooling off. To sum it up: Gold is back in action, driven by a weak dollar, hopeful investors, and the big Fed meeting just around the corner. But watch out for US-China trade talks—they could shake things up. Stay tuned as this glimmering saga continues!

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Tags: Gold prices, Federal reserve, Us dollar, Trade talks, Precious metals, Investment,