Gold prices edged up after falling for two days, as investors remained cautious despite positive US economic data and progress in trade negotiations.
The metal rose by as much as 0.7%, trading near $3,320 an ounce, while the US dollar held steady. This followed a 1.3% drop on Tuesday after strong US consumer confidence figures suggested a better economic outlook.
Market participants also reacted to improving trade relations between the US and the European Union. President Donald Trump expressed optimism about faster negotiations, just days after threatening to impose 50% tariffs on EU goods.
Gold has gained over 25% this year but is still about $180 below its record high reached last month. Ongoing risks, such as the growing US deficit, global trade uncertainties, and geopolitical tensions in Ukraine and the Middle East, continue to support gold’s appeal as a safe haven.
Looking ahead, investors are preparing for the release of the Federal Reserve’s preferred inflation gauge, the US personal consumption expenditures price index excluding food and energy, scheduled for Friday.
As of 9:47 a.m. in London, spot gold was up 0.5% at $3,317.78 an ounce. Other precious metals like silver, platinum, and palladium also saw gains, while the Bloomberg Dollar Spot Index remained steady after a 0.5% rise on Tuesday.
