Gold Shines as Fed Cuts Rates, Trade Deal Fuels Hope

 By MD Rubel islam: Global Finance News

October 30, 2025 · 8:51 PM GMT+6 · Updated

"Fed rate cut and U.S.-China trade deal lift gold prices as investors seek safe-haven assets amid global uncertainty."

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The main point 

“Gold prices surge as the Federal Reserve trims interest rates and investors weigh the U.S.-China trade deal, with market sentiment boosted by Nvidia’s $5T milestone rally.”

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Gold Gains as Fed Trims Rates, Investors Eye U.S.-China Trade Deal

Gold Prices Surge: Fed’s Rate Cut and U.S.-China Trade Deal Drive Market Momentum

Global gold prices climbed sharply again this week. On Thursday, spot gold rose nearly 2%, reaching $3,970.36 per ounce.

Analysts say the rally is fueled by the U.S. Federal Reserve’s rate cut and investor caution over the U.S.-China trade deal.

Fed Rate Cut: New Hope for Investors

Why the Fed’s Rate Cut Matters

The Federal Reserve recently announced a 25-basis point (0.25%) interest rate cut.

This decision strengthened safe-haven assets, especially gold prices, as investors shifted toward stability.

> When interest rates fall, non-yielding assets like gold become more attractive because, despite not paying dividends or interest, they hold value during uncertainty.

Gold as a Shield Against Economic Uncertainty

Amid ongoing geopolitical uncertainty and a slowing global economy, investors once again turned to gold for security.

Following the interest rate cut, the metal saw a strong rally as confidence in the broader market wavered.

Nvidia $5T Boosts Wall St Rally

The Wall Street rally added fresh optimism to global investors after Nvidia’s market valuation surged past $5 trillion, driven by demand for AI chips and data center technology.

However, despite the equity market’s excitement, gold’s rise shows that investors are still hedging against macroeconomic and geopolitical risks, balancing between risk assets and safe havens.

U.S.-China Trade Deal: Clouds of Uncertainty Linger

Trump’s New Announcement — Tariffs Cut, Questions Remain

Donald Trump announced he would cut tariffs on China from 57% to 47% in exchange for Beijing resuming U.S. soybean purchases, restarting rare earth exports, and cracking down on the fentanyl trade.

But market analyst Jeffrey Christian noted —

> “It’s a temporary truce. Instead of boosting investor confidence, it adds more uncertainty about the trade war’s future.”

As a result, equity markets and stock markets softened slightly while investors returned to safe-haven gold for security.

Wells Fargo Investment Institute: Raises 2026 Gold Target

Wells Fargo’s Gold Forecast — A Brighter Future

The Wells Fargo Investment Institute raised its 2026 year-end gold target to $4,500–$4,700 per ounce, up from the previous $3,900–$4,100 range — a jump of nearly 15%.

Why Wells Fargo Expects Higher Gold Prices

Key drivers include:

• Trade policy uncertainty

• Geopolitical tensions

• Strong private and official demand for gold

> “We expect these ongoing uncertainties to continue supporting gold demand and drive higher prices,” the institute said in its analysis.

Other Precious Metals Also Climb

Prices for silver, platinum, and palladium also moved higher:

• Silver: +1.7% → $48.34/oz

• Platinum: +0.9% → $1,598.55/oz

• Palladium: +1% → $1,415.52/oz

This suggests the entire precious metals market is trending upward on strong safe-haven demand.

Global Economic Uncertainty: Investors Seek New Strategies

Why Buying Gold Makes Sense Now

As interest rates decline and trade deals remain uncertain, investors are turning to gold to safeguard their portfolios.

Gold isn’t just a metal — it’s a proven economic hedge that protects wealth in turbulent times.

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Conclusion: Gold Remains King Amid Global Uncertainty

Amid the Fed’s rate cuts, Trump’s tariff reduction, and U.S.-China trade tensions,

gold once again proves itself as the world’s most reliable safe-haven asset.

As economic uncertain

ty and geopolitical risks intensify,

the rise in gold prices isn’t just an investment — it’s a smart move for long-term stability.

Read more details  Gold Rises as Fed Cuts Rates, Trade Deal in Focus