Gold prices (XAU/USD) attracted some bargain-hunting buying during Thursday’s Asian session and rebounded above $3,400 in the last hour, reversing a major part of the slide from a two-week high.

U.S. President Donald Trump said he was in no rush to sign any deal, dampening expectations for a quick resolution to the U.S. trade war with China. This, along with geopolitical risks stemming from the Russia-Ukraine war, conflicts in the Middle East and a dangerous military confrontation on the India-Pakistan border, supported the safe-haven metal.

Meanwhile, the market's initial reaction to the Federal Reserve's hawkish pause on Wednesday was short-lived amid heightened economic uncertainty sparked by Trump's rapidly changing trade policy stance.

This in turn failed to help the U.S. dollar (USD) capitalize on modest gains from the previous day, seen as another factor supporting demand for gold prices. However, the generally positive sentiment in the stock market could discourage gold/dollar bulls from making aggressive bets and limit any meaningful gains.