Gold Rises as Trump Tariff Ruling Offsets China Trade Optimism; CPI Data Eyed

Gold prices edged higher in Asian trading on Wednesday, buoyed by safe-haven demand after a U.S. court upheld former President Donald Trump’s trade tariffs, tempering market enthusiasm over recent progress in U.S.-China trade negotiations.

Spot gold gained 0.6%, reaching $3,341.03 per ounce, while August gold futures climbed by the same margin to $3,362.25 per ounce as of 00:29 ET (04:29 GMT).

The uptick in gold came despite a modest “risk-on” mood across Asia following an announcement that the U.S. and China had reached a framework agreement on trade. However, markets showed restraint, with U.S. stock index futures slipping, after a U.S. appeals court ruled to keep Trump-era tariffs in place—at least temporarily—pending a decision on a lower court’s earlier effort to block them.

Tuesday’s ruling ensures that Trump’s proposed “liberation day” tariffs, which include steep levies on key trade partners, remain intact as the July implementation deadline approaches.

While news of the trade agreement between the U.S. and China initially lifted market sentiment, lack of detailed commitments and ongoing geopolitical risks muted enthusiasm. U.S. officials said the framework builds on a May de-escalation deal reached in Geneva and aims to address contentious issues, including China’s rare earth exports and U.S. chip restrictions. Still, investors remain skeptical until more specifics emerge.

Gold Prices Stay Range-Bound

Despite recent gains, gold remains within a consolidation range, having struggled to retake record highs from earlier this year. Lingering uncertainties surrounding global trade and monetary policy continue to support bullion, albeit within a capped range.

Other Precious and Industrial Metals:

• Platinum futures surged 1.4% to $1,237.50/oz, hovering near a four-year high.
• Silver futures added 0.3% to $36.765/oz, approaching levels not seen in over 13 years.
• Copper prices saw mild gains: London futures up 0.2% to $9,770.03/ton, while U.S. copper futures rose to $4.8970/pound.

CPI Data in Focus

Investor attention is now shifting toward the U.S. Consumer Price Index (CPI) report, due later Wednesday. The data is expected to show persistent inflationary pressures, reflecting the ongoing impact of tariffs and broader supply chain dynamics.

The U.S. dollar firmed ahead of the release, as the data could reinforce expectations that the Federal Reserve may hold rates steady in the near term. A stronger dollar, however, is typically a headwind for commodity prices, including precious metals.

Outlook:
With the combination of tariff uncertainty, high inflation, and cautious central bank policy, gold is likely to remain sensitive to both macroeconomic data and geopolitical developments. A CPI print above expectations could temporarily dampen bullion gains, while weaker data may reignite interest in safe-haven assets.