Gold Rises as Tariff Uncertainty Weighs on Sentiment, Investors Eye U.S. Inflation Data
Gold prices edged higher in Asian trading on Wednesday, as a U.S. court ruling that upheld former President Donald Trump’s trade tariffs tempered optimism surrounding progress in U.S.-China trade talks.
Demand for safe-haven assets also climbed ahead of key U.S. consumer price index (CPI) data, which is expected to provide insight into the state of the American economy and the outlook for interest rates.
The U.S. and China recently announced a framework agreement to resume trade negotiations, prompting a modest risk-on reaction in Asian markets and slightly limiting gold’s momentum. However, U.S. equity index futures slipped after a U.S. appeals court ruled that Trump’s tariffs would remain in place—at least temporarily—while the court reviews a lower court’s decision to block them.
As of 00:29 ET (04:29 GMT), spot gold gained 0.6% to $3,341.03 an ounce, while August gold futures also rose 0.6% to $3,362.25 per ounce.
Gold Gains on Tariff Worries Despite Limited Trade Optimism
Gold prices were supported by risk-off sentiment in U.S. markets following Tuesday’s court decision, which keeps Trump’s proposed “liberation day” tariffs—set to impose steep levies on major trading partners—intact for now. These tariffs are scheduled to take effect in early July unless overturned.
While the U.S.-China announcement offered some encouragement, investors were cautious due to the lack of specific details. According to officials, the new agreement builds on the preliminary trade truce reached in Geneva this past May and aims to address key issues, including China’s rare earth exports and U.S. semiconductor restrictions.
Still, the absence of concrete terms kept a lid on market optimism, limiting gains in risk assets across Asia.
Gold remained within a tight trading band, struggling to retest record highs reached earlier in the year.
Other Precious and Industrial Metals Gain
Elsewhere in the metals market, platinum futures surged 1.4% to $1,237.50 per ounce, hovering near their highest level in over four years. Silver futures rose 0.3% to $36.765 per ounce, staying close to a 13-year peak.
Industrial metals also advanced slightly. Benchmark copper futures on the London Metal Exchange were up 0.2% to $9,770.03 per ton, while U.S. copper futures rose 0.2% to $4.8970 per pound.
All Eyes on U.S. CPI for Economic, Rate Clues
Investors are now focused on the upcoming U.S. CPI release, expected later Wednesday, which may influence Federal Reserve policy. The May inflation report is projected to show a modest uptick, reinforcing the view that price pressures remain persistent.
Recent months have seen U.S. inflation plateau, with the continuation of Trump-era tariffs contributing to elevated consumer prices. Anticipation of sticky inflation pushed the dollar higher ahead of the data, which in turn limited upside in commodity markets, including metals.
