Gold prices rose slightly on Wednesday, rebounding from a two-day decline, as renewed confidence in the U.S. economy lifted investor sentiment, according to Bloomberg, cited by News.Az.
Spot gold was trading near $3,309 an ounce after falling 1.3% on Tuesday. By 8:07 a.m. in London, prices had gained 0.3% to $3,311.47 an ounce.
The modest recovery followed data showing a sharp rebound in U.S. consumer confidence in May, reversing a nearly five-year low and suggesting growing optimism about the economy and labor market.
However, the stronger dollar—bolstered by the confidence data—put some pressure on bullion, making it more expensive for overseas buyers. The Bloomberg Dollar Spot Index held steady on Wednesday, after rising 0.5% the previous day.
Investors also took note of improving trade relations between the U.S. and the European Union. President Joe Biden expressed encouragement over the bloc’s move to accelerate trade negotiations, just days after warning of potential 50% tariffs.
Gold has surged more than 25% so far this year, though it remains about $200 below last month’s record high. Persistent risks—including a growing U.S. budget deficit, unresolved global trade tensions, and geopolitical instability in Ukraine and the Middle East—continue to support gold’s appeal as a safe-haven asset.
Looking ahead, investors are awaiting Friday’s release of the Federal Reserve’s preferred inflation gauge: the U.S. personal consumption expenditures (PCE) price index, excluding food and energy.
In other metals, silver remained largely unchanged, while platinum and palladium posted gains.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Qilu Bank Enhances Support for Small Businesses with Innovative Financial Tools
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
