Gold prices rose on Wednesday, driven by persistent uncertainty surrounding US-China trade negotiations and a recent court ruling that upheld tariffs from the Trump administration, which fueled demand for the precious metal as a safe-haven asset.
Spot gold gained 0.7%, reaching an intraday high of $3,348 per ounce, up from its opening price of $3,322. As of the latest update, gold was trading near $3,343 per ounce, according to Gold Bullion.
Investor focus is now shifting to the upcoming US Consumer Price Index (CPI) inflation data, which could offer critical insight into the Federal Reserve’s potential next steps on monetary policy. Market participants are hoping for clearer signs of inflationary pressure, which could influence the Fed‘s decisions on interest rates in the coming months.
The upward movement in gold prices also comes amid ongoing concerns over US-China trade relations, particularly following two days of negotiations in London. On Tuesday, US and Chinese officials announced a preliminary framework to revive their stalled trade truce and lift Chinese restrictions on rare earth metal exports. However, the agreements remain subject to final approval from US President Donald Trump and Chinese President Xi Jinping, fueling continued uncertainty in the markets and supporting gold’s gains.
The uncertainty follows the introduction of tit-for-tat tariffs in April, which escalated tensions between the two countries into a trade war. Talks in Geneva last month resulted in a preliminary deal to reduce tariffs from record highs, but the delay in formal approval has reignited fears over trade disruptions.
Adding to gold’s upward momentum, an appeals court ruling on Tuesday largely upheld Trump-era tariff measures targeting key US trading partners. The court’s decision reinforced expectations that these tariffs will remain in place for the foreseeable future, sparking increased risk aversion in US futures markets.
Investors are now awaiting the release of the US CPI inflation data later on Wednesday. Analysts expect a modest increase in inflation for May, generally in line with 2025 forecasts. US price growth has plateaued recently, with Trump-era tariffs continuing to exert upward pressure on consumer prices.
Meanwhile, the World Bank on Tuesday lowered its global growth forecast for 2025 by 0.4 percentage points to 2.3%, citing rising trade barriers and growing economic uncertainty as major challenges for economies worldwide.
Looking ahead, analysts at ANZ Bank suggest that gold prices may stabilize in the short term but are likely to rise again, potentially reaching $3,600 per ounce by the end of the year.
Gold Prices in Egypt: Sideways Movement Amid Dollar Fluctuations
CAIRO — In Egypt, gold prices remained largely unchanged on Wednesday, as local markets showed little momentum in either direction. This flat performance is attributed to fluctuations in international gold prices and the ongoing depreciation of the US dollar against the Egyptian pound.
The most actively traded 21-karat gold opened at EGP 4,670 per gram and remained at that level throughout the session. This followed a slight dip of EGP 5 on Tuesday, when gold closed at EGP 4,665 per gram, after opening at EGP 4,670.
This muted movement reflects the broader sideways trend in global gold markets, coupled with the gradual strengthening of the Egyptian pound, which has reduced the impact of international price fluctuations on the local market.
The Egyptian Minister of Finance recently announced a $2 billion decline in external debt over the past ten months, attributed to a slowdown in foreign borrowing and a resurgence of foreign investor confidence. This increased foreign investment in government debt instruments is expected to bring greater stability to Egypt’s financial markets, which, in turn, is contributing to the steady appreciation of the Egyptian pound.
This strengthening of the pound is further influencing the dynamics of local gold prices, offsetting the global fluctuations that typically drive price changes in Egypt’s gold market.
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