Spot Gold gained on Wednesday, snapping a two-day streak of losses, after data revealed a surge in US consumer prices in June, while market players awaited more clarity on US trade policy.
Annual CPI inflation in the US accelerated to 2.7% in June, or the highest rate since February, from 2.4% in May.
And, annual core inflation picked up to 2.9% in June from 2.8% in May.
The data suggested tariffs were beginning to have an impact on inflation and likely prompting the Federal Reserve to leave borrowing costs on hold until September.
US President Donald Trump threatened over the past weekend to impose a 30% tariff on imports originating from Mexico and the European Union, beginning on August 1st, as trade negotiations failed to produce a comprehensive deal.
Still, Trump said he was open to further discussions.
“Many countries are still negotiating with the U.S. on the tariffs. There are still a lot of uncertainties in the market and many are looking for safe havens,” Brian Lan, managing director at GoldSilver Central, Singapore, was quoted as saying by Reuters.
Meanwhile, the US Dollar Index pulled back from a one-month high and was last down 0.17% to 98.469.
A softer dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
Spot Gold was last up 0.38% on the day to trade at $3,337.64 per troy ounce.
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