Gold prices rose on Wednesday as investors weighed lingering uncertainty surrounding US-China trade relations and a recent court ruling that upheld Trump-era tariffs, bolstering demand for the precious metal as a safe-haven asset.
Markets are now firmly focused on upcoming US inflation data for further insight into the Federal Reserve’s potential monetary policy moves.
Global spot gold gained 0.7%, reaching an intraday high of $3,348 per ounce after opening at $3,322. Prices were last seen trading near $3,343 per ounce, according to Gold Bullion.
US and Chinese officials announced on Tuesday that they had agreed on a framework to revive the stalled trade truce and lift Chinese restrictions on rare earth metal exports, following two days of negotiations in London. The agreements now await final approval from US President Donald Trump and Chinese President Xi Jinping.
The delay in formal approval has reignited market uncertainty, supporting gold’s upward momentum in Wednesday trading.
This follows the tit-for-tat tariffs imposed by both nations in April, which escalated into a trade war. Talks in Geneva last month led to a preliminary agreement to reduce tariffs from their record highs.
Gold also drew support from increased risk aversion in US futures markets after an appeals court on Tuesday largely upheld Trump’s previous tariff measures targeting key trading partners. The ruling solidified expectations that these tariffs will remain in place for the foreseeable future.
Attention now turns to the release of US Consumer Price Index (CPI) inflation data, scheduled for later on Wednesday. Investors are closely watching for signs of persistent price pressures that could influence the Fed’s rate decision in the coming months.
The data is expected to show a modest increase in inflation for May, broadly in line with 2025 forecasts. Price growth in the US has plateaued recently, with Trump-era tariffs contributing to sustained upward pressure on consumer prices.
Meanwhile, the World Bank on Tuesday lowered its global growth forecast for 2025 by 0.4 percentage points to 2.3%, citing rising trade barriers and growing economic uncertainty as major headwinds facing most economies.
In line with this, ANZ Bank’s short-term outlook suggests that gold prices may stabilise before rising again, potentially reaching $3,600 per ounce by year-end.
Gold Prices in Egypt
In Egypt, gold prices continue to trade sideways, with no clear momentum in either direction. This is largely due to fluctuations in international gold markets and the ongoing depreciation of the US dollar against the Egyptian pound.
The most actively traded 21-karat gold opened Wednesday’s session at EGP 4,670 per gram and remains at that level, after dipping by EGP 5 on Tuesday to close at EGP 4,665 per gram. Tuesday’s session had also opened at EGP 4,670.
This muted movement reflects the broader sideways trend in global gold prices, coupled with the gradual strengthening of the Egyptian pound, which is weakening the impact of international price changes on local markets.
The Egyptian Minister of Finance recently announced a $2bn decline in external debt over the past ten months, attributed to a slowdown in foreign borrowing and a return of foreign investor confidence. Increased foreign investment in government debt instruments is expected to bring greater stability to Egypt’s financial markets.
This, in turn, is contributing to the steady appreciation of the pound, which continues to influence local gold pricing dynamics.
