Gold Gives Back Ground Following Recent Surge

(RTTNews) - Gold futures showed a notable move to the downside during trading on Wednesday, giving back ground after moving sharply higher over the past few sessions.

After soaring $100.10 or 3.0 percent to a record closing high during Tuesday's session, gold for May delivery slumped $30 or 0.9 percent to $3,381.40 an ounce.

Traders cashed in on the recent surge by the price of gold following news that Treasury Secretary Scott Bessent will meet with China's lead representative on economic matters during a trip to Switzerland.

"My sense is that this will be about de-escalation, not about the big trade deal," Bessent told Fox News. "But we've got to de-escalate, before we can move forward."

Bessent called the massive tariffs imposed by the U.S. and China the "equivalent of an embargo," adding, "We don't want to decouple, what we want is fair trade."

However, Bessent downplayed the negotiations during testimony before the House Financial Services Committee, calling the beginning of talks the "opposite of advanced."

The pullback by the price of the precious metal also came as traders looked ahead to the Federal Reserve's monetary policy announcement.

The Fed left interest rates unchanged for the third straight meeting, as widely expected, while warning of increasing risks of higher unemployment and higher inflation.