Gold rises as US-China trade uncertainty persists, investors eye inflation data
Gold prices edged higher on Wednesday as uncertainty surrounding the finalisation of a US-China trade agreement weighed on sentiment and fuelled some safe-haven buying, with investors awaiting key US inflation data for further market direction.
Spot gold rose 0.2% to $3,328.89 an ounce, as of 0153 GMT. US gold futures were up 0.2% to $3,349.80.
US and Chinese officials agreed on a framework to put their trade truce back on track and resolve China's export restrictions on rare earth minerals and magnets, US Commerce Secretary Howard Lutnick said on Tuesday at the conclusion of two days of intense negotiations in London.
Lutnick said that the US team plans to present the framework to President Donald Trump for approval prior to implementation, while the Chinese delegation will similarly seek an endorsement from President Xi Jinping.
'We know that US and Chinese negotiators have agreed on a 'framework', but until Trump or Xi approves them, uncertainty lingers. And that uncertainty is supporting gold heading into the inflation figures,' said Matt Simpson, a senior analyst at City Index.
The US and China had imposed tit-for-tat tariffs in April, sparking a trade war. Following talks in Geneva last month, both nations agreed to cut tariffs back from triple-digit levels.
The World Bank on Tuesday slashed its global growth forecast for 2025 by four-tenths of a percentage point to 2.3%, saying that higher tariffs and heightened uncertainty posed a 'significant headwind' for nearly all economies.
Gold prices tumble
The US consumer price index (CPI) report due at 1230 GMT could give investors more guidance on the US Federal Reserve's policy path.
The Federal Reserve will keep interest rates on hold for at least another couple of months, according to most economists polled by Reuters, as risks linger that inflation may resurge due to Trump's tariff policies.
Elsewhere, spot silver was unchanged at $36.53 per ounce, platinum fell 0.4% to $1,216.42, while palladium was up 0.3% to $1,063.62.
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