Spot Gold rose 0.5% on Wednesday, while holding above the $3,300 mark, as uncertainty over the finalization of a trade deal between the US and China spurred safe-haven demand.
As per comments by US and Chinese officials, both parties established a framework that is set to revive the trade truce. As part of the deal, China agreed to halt the restrictions imposed on rare earth exports.
“We know that U.S. 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,” Matt Simpson, senior analyst at City Index, was quoted as saying by Reuters.
Further heightening uncertainty, a federal appeals court allowed the Trump administration’s broadest tariffs to stay in effect.
Meanwhile, the World Bank has revised down its full-year global growth forecast to 2.3%, highlighting higher tariffs and heightened uncertainty pose a “significant headwind” for almost all countries.
On the data front, market players now awaited the key US CPI inflation report that may provide further clues over the Federal Reserve’s monetary easing path.
Spot Gold was last up 0.51% on the day to trade at $3,339.43 per troy ounce.
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