Gold prices inched higher on Wednesday as ongoing uncertainty surrounding the finalization of a U.S.-China trade agreement supported safe-haven demand. Investors are now looking to key U.S. inflation data for signals on the Federal Reserve’s next policy move.
Spot gold rose 0.2% to $3,328.89 per ounce as of 01:53 GMT, while U.S. gold futures were up 0.2% at $3,349.80.
The modest gains come after two days of high-level negotiations in London, where U.S. and Chinese officials reached a tentative framework aimed at restoring their trade truce and resolving China’s export restrictions on rare earth minerals and magnets. U.S. Commerce Secretary Howard Lutnick said Tuesday that the framework will be presented to President Donald Trump and Chinese President Xi Jinping for final approval.
“We know that U.S. and Chinese negotiators have agreed on a ‘framework,’ but until Trump or Xi approves them, uncertainty lingers,” said Matt Simpson, senior analyst at City Index. “And that uncertainty is supporting gold heading into the inflation figures.”
The two economic superpowers had previously imposed tit-for-tat tariffs in April, triggering a trade war. Talks held in Geneva last month led to an agreement to roll back tariffs from triple-digit levels.
Adding to global market caution, the World Bank on Tuesday cut its global growth forecast for 2025 by 0.4 percentage points to 2.3%, citing higher tariffs and mounting economic uncertainty as widespread headwinds.
Investor attention now turns to the U.S. Consumer Price Index (CPI) report, due at 12:30 GMT. Economists expect the data to provide clearer insight into the Federal Reserve’s policy outlook. According to a Reuters poll, the Fed is expected to hold interest rates steady for at least the next few months, though lingering inflation risks—partly linked to tariff policies—could complicate the timing of any potential rate cuts.
Other Precious Metals Mixed
In other metals, spot silver was unchanged at $36.53 per ounce. Platinum fell 0.4% to $1,216.42, while palladium edged up 0.3% to $1,063.62.
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