Gold prices stabilized on Wednesday as investors refrained from making significant commitments in anticipation of the Federal Reserve’s policy statement later in the day, seeking insights into potential future rate cuts. Concurrently, attention remained on U.S. trade negotiations as the August 1 deadline approached.

Spot gold maintained its position at $3,329.19 per ounce as of 0020 GMT. U.S. gold futures increased by 0.1%, reaching a level of $3,327.70. U.S. and Chinese officials reached a consensus on Tuesday to pursue an extension of their 90-day tariff truce, after engaging in discussions over the course of two days in Stockholm.

U.S. officials indicated that the decision to extend a trade truce, which is set to expire on August 12, rests with President Donald Trump, who may choose to allow tariffs to escalate to triple-digit levels. Meanwhile, the U.S. dollar index remained stable after reaching a peak not seen in over a month on Tuesday, resulting in an increase in the cost of bullion priced in dollars. Investors shifted their attention to the Federal Reserve’s policy to assess the trajectory of future rate cuts, in light of the central bank’s two-day meeting, where it is largely anticipated that rates will remain unchanged, notwithstanding Trump’s persistent urging for reductions.

The U.S. trade deficit in goods decreased to its lowest level in almost two years in June, driven by a significant decline in imports. This development reinforces the expectation among economists that trade may have played a substantial role in the anticipated recovery of economic growth in the second quarter. The International Monetary Fund has adjusted its global growth projections for 2025 and 2026 upward, attributing this revision to stronger-than-anticipated purchases in advance of an increase in U.S. tariffs on August 1, alongside a decrease in the effective tariff rate from 24.4% to 17.3%.

On Tuesday, Trump issued a warning regarding tariffs and additional measures against Russia, stating that these would be implemented “10 days from today” should Moscow fail to demonstrate any advancement in resolving its protracted conflict in Ukraine, which has persisted for over three years. Spot silver maintained its position at $38.20 per ounce, while platinum experienced a decline of 0.4% to $1,389.20, and palladium remained stable at $1,258.75.