Gold prices rose on Wednesday as investors bought, but easing trade tensions between the United States and the European Union limited gains, as the market awaited the US core personal consumption expenditures report for clues on interest rates.
Spot gold rose 0.3% to $3,308.99 per ounce by 02:37 GMT, recovering slightly from a 1% decline in the previous session.
US gold futures rose 0.2% to $3,308.30.
US President Donald Trump backed down from his threat to impose 50% tariffs on the European Union, postponing implementation until July 9 to allow time for negotiations between the White House and the 27-nation bloc.
“Gold’s dip below $3,300 has attracted some buyers,” said Tim Waterer, senior market analyst at KCM Trade. “However, the broader market remains generally optimistic now that trade tensions between the US and the EU have eased, limiting the upside potential for gold for now.”
The market is now awaiting US personal consumption expenditures data for April, due on Friday, to assess the path of a potential interest rate cut.
Meanwhile, US consumer confidence rebounded in May, ending a five-month decline, supported by a temporary truce in the US-China trade war.
Among other precious metals, spot silver was steady at $33.31 per ounce, platinum rose 0.4% to $1,084.07, and palladium fell 0.2% to $976.22.
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