Spot gold climbed 0.6% to $3,341.03 an ounce, while August gold futures also gained 0.6%, trading at $3,362.25 per ounce as of 00:29 ET (04:29 GMT).
The uptick in prices came after a U.S. appeals court ruled that Trump’s “Liberation Day” tariffs—targeting major trading partners—can remain in effect for now, pending a final decision on an earlier trade court ruling that sought to block them. The legal victory preserves Trump’s tariff plans ahead of their early July implementation deadline and triggered risk-off sentiment across markets.
Tariff Uncertainty Offsets Limited Trade Progress with China
Although the U.S. and China announced a preliminary framework for renewed trade cooperation—intended to formalize May’s Geneva de-escalation—the lack of concrete details limited market enthusiasm. The agreement is expected to address contentious issues such as China’s rare earth exports and U.S. restrictions on advanced chip sales.
U.S. stock index futures slipped in early regional trading, reflecting investor caution over the persistent trade headwinds. Gold, in contrast, benefited from a renewed flight to safety, though its rally was tempered by tentative risk-on sentiment following the U.S.-China announcement.
Gold Range-Bound Ahead of Key Inflation Report
Despite the gains, gold remained within a narrow trading range, unable to challenge record highs reached earlier this year. Analysts say the metal’s next decisive move hinges on upcoming U.S. inflation data.
Attention now turns to the U.S. Consumer Price Index (CPI) report, scheduled for release later Wednesday. Economists expect the data to show a slight uptick in inflation for May, reinforcing the view that price pressures remain stubbornly high. Recent tariff-related disruptions have added to inflationary trends, keeping consumer prices elevated.
A stronger-than-expected CPI reading could influence the Federal Reserve’s next move, possibly delaying anticipated interest rate cuts. This expectation lent some strength to the U.S. Dollar in early trade, limiting broader gains across commodity markets.
Precious and Industrial Metals Mixed
Other precious metals also traded higher. Platinum futures jumped 1.4% to $1,237.50 an ounce, hovering near a four-year high, while silver rose 0.3% to $36.765 an ounce—approaching its highest level in over 13 years.
In industrial metals, benchmark copper futures on the London Metal Exchange rose 0.2% to $9,770.03 a ton. U.S. copper futures mirrored the gain, advancing to $4.8970 per pound.
As traders brace for further economic signals, gold’s short-term direction remains closely tied to inflation trends and monetary policy expectations in the U.S.
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