Gold prices hovered around $4,130 per ounce on Wednesday, stabilizing after a sharp drop of over 5% in the previous session, the steepest since 2021. The metal came under pressure as traders locked in gains from recent record-breaking rallies, while improving risk appetite, fueled by hopes of easing US–China trade tensions, dented bullion’s safe-haven appeal. Gold demand in India also softened following the seasonal surge, adding pressure to the physical market. Still, gold remained up nearly 60% year-to-date, supported by expectations of further Federal Reserve rate cuts at its final two meetings of the year and by broader market uncertainties. Investors now turn their attention to Friday’s CPI report for fresh monetary policy cues.