Gold Up After US Data, Trade Talks in Focus
Gold edged up after a two-day decline, as markets remained in wait-and-see mode despite data showing improving economic sentiment and signs of progress in trade talks.
Bullion prices were trading near $3,309 an ounce after falling 1.3% on Tuesday as U.S. consumer confidence rose sharply in May from a near five-year low, signaling a more positive outlook for the economy and labor market. The dollar rose after the data, making bullion more expensive for most buyers.
Investors also weighed improving trade relations between Washington and Brussels, with U.S. President Donald Trump saying he was pleased the bloc was accelerating negotiations, just days after threatening 50% levies.
Gold prices have risen more than a quarter so far this year, though they are currently trading about $200 below an all-time high set last month. Still, lingering risks continue to keep markets wary and strengthen bullion’s appeal as a safe haven. Investors are monitoring a ballooning U.S. deficit, uncertainty over global trade relations and geopolitical tensions in Ukraine and the Middle East.
Looking ahead, investors are gearing up for the Federal Reserve’s preferred inflation measure, the U.S. personal consumption expenditures price index excluding food and energy, due on Friday.
Spot gold rose 0.3% to $3,311.25 an ounce as of 8:15 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady, after rising 0.5% on Tuesday. Silver, platinum and palladium were little changed.
Source: Bloomberg
