Gold Prices Edge Higher Amid US-China Trade Uncertainty; Investors Await US CPI Data, And Fed Signals

Gold prices rose slightly in early trade on Wednesday as persistent uncertainty over the finalisation of a US-China trade deal spurred safe-haven demand. Investors also remain focused on the upcoming US inflation data, which could shape expectations around the Federal Reserve’s next policy move.

Gold and Precious Metals Update

Spot gold climbed 0.2% to $3,328.89 an ounce as of 01:53 GMT, while US gold futures also advanced 0.2% to $3,349.80.

Among other precious metals:

• Silver remained flat at $36.53 per ounce
• Platinum declined 0.4% to $1,216.42
• Palladium gained 0.3% to $1,063.62

Trade Talks and Market Sentiment

• The United States and China have reportedly come to a preliminary understanding to revive their trade truce.
• The tentative deal includes discussions on easing export restrictions related to vital materials like rare earth minerals and industrial magnets.
• US Commerce Secretary Howard Lutnick confirmed that the framework will soon be reviewed by President Donald Trump and Chinese President Xi Jinping for final approval.
• However, since no official confirmation has been made yet, investors remain wary of the outcome.
• This ongoing uncertainty in the global trade landscape has continued to lend support to gold prices.
• Market participants are also closely watching upcoming economic data, adding to the cautious sentiment.

Inflation Data in Focus

Investors are waiting on the US Consumer Price Index (CPI) report due later today, and that could give clues to how the Federal Reserve will view interest rates. Most economists expect the Fed will leave rates unchanged in the coming months, especially with concerns that inflation might flare up, amid ongoing tariff policies.

Global Growth Outlook

Adding to the cautious market mood, the World Bank on Tuesday revised its global growth forecast for 2025 downward by 0.4 percentage points to 2.3%. It cited rising tariffs and geopolitical tensions as significant headwinds to economic expansion across most regions.

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