Gold edges upward as investors seize the opportunity to buy the dip in anticipation of US data. Gold prices experienced a modest uptick, taking advantage of recent declines following a one-month low. Investors are closely monitoring the U.S. Producer Price Index data for economic insights. The prior session witnessed a decrease in gold prices, subsequent to a consensus reached between Washington and Beijing aimed at reducing trade tensions.
Gold prices experienced a modest increase on Thursday as investors capitalized on reduced levels following the metal’s decline to a one-month low in the prior session. Meanwhile, market participants are now looking forward to the U.S. Producer Price Index data for a more definitive economic trajectory. Spot gold increased by 0.2% to reach $3,183.20 an ounce. U.S. gold futures experienced a slight decline of 0.1%, settling at $3,185.60.
In the previous session, spot gold declined to its lowest level since April 10 following an agreement between Washington and Beijing to significantly reduce tariffs and implement a 90-day pause, thereby further de-escalating a potentially damaging trade war between the world’s two largest economies. Gold, historically regarded as a safeguard against economic and political instabilities, flourishes in a low-interest-rate landscape.
Spot silver decreased by 0.2% to $32.16 an ounce, while platinum increased by 0.8% to $984.05, and palladium saw a rise of 0.3% to $953.75.
Last month, the U.S. and China enacted reciprocal tariffs, igniting a trade war that intensified concerns regarding a potential global recession. Attention is now directed towards the U.S. PPI data, set to be released later today, as market participants seek additional insights into the Fed’s policy trajectory in light of the recent softer-than-anticipated consumer data.
Federal Reserve policymakers are maintaining interest rates at their current levels as they evaluate the impact of U.S. President Donald Trump’s tariffs and trade negotiations on prices and the broader economy. At this point, the empirical evidence provides them with scant information to work with. Expectations in the markets indicate a likelihood of 50 basis points in interest rate cuts this year, commencing in October.