Gold prices rose in early U.S. trade on Wednesday as market participants look forward to an expected Federal Reserve rate cut later in the day.

Spot gold edged up 1.8% to $4,024.42 per ounce as of 06:43 ET (10:43 GMT), while U.S. Gold Futures edged down 1.4% to $4,038.01.

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.

These signals of easing trade and geopolitical risk tend to reduce demand for safe-haven assets like gold, contributing to the recent pull-back from record highs.

Metal markets subdued

Other precious and industrial metals were also subdued on Wednesday as investors squared positions ahead of the Fed decision. 

Silver Futures edged 2% higher to $48.27 per ounce, while Platinum Futures gained 1.5% to $1,608.65/oz.

U.S. Copper Futures gained 0.9% to $5.22 a pound.