Gold Prices Rise as Markets Focus on U.S. Tariff Negotiations
Gold prices advanced on Wednesday as global markets turned their attention to ongoing U.S. trade policy developments and assessed fresh inflation data pointing to rising consumer prices in June. The upward movement reflects investor caution amid lingering uncertainties over tariffs and monetary policy direction.
Spot gold climbed 0.4% to $3,334.12 per ounce as of 04:01 GMT, while U.S. gold futures edged up 0.1% to $3,340.90 per ounce.
The latest U.S. consumer price data revealed the highest monthly increase in five months, fueled by rising costs of select goods and services. These figures reinforced expectations that inflationary pressures—partly driven by existing tariffs—could prompt the Federal Reserve to maintain interest rates at current levels until at least September.
Despite gold’s gains, strong performance in the U.S. dollar and 10-year Treasury yields, both hovering near multi-week highs, limited further upside momentum for the metal. Gold continues to trade in a narrow range with a slightly supportive bias due to broader market uncertainty.
Investors are now awaiting the U.S. Producer Price Index (PPI) data, scheduled for release at 12:30 GMT today, which is expected to provide deeper insight into input cost trends and inflationary outlook.
Market sentiment remains cautious following recent threats by the U.S. administration to impose 30% tariffs on imports from Mexico and the European Union starting August 1. However, there are signs of potential for continued negotiations, which have contributed to the current atmosphere of uncertainty.
In the broader precious metals market, silver rose 0.3% to $37.82 per ounce, platinum gained 0.2% to $1,379.46, and palladium advanced 0.4% to $1,210.66 per ounce.
