Gold prices rose on Wednesday as uncertainty surrounding the finalization of a U.S.-China trade agreement weighed on sentiment and fueled some safe-haven buying, with investors awaiting key U.S. inflation data for further market direction.
In Dubai, gold rates saw a decline, with 24-carat gold falling by AED2.5 to settle at AED398.5. Similarly, 22-carat gold decreased in price, now priced at AED369. Additionally, 21-carat gold is valued at AED354, while 18-carat gold has reached AED303.25.
Spot gold gained 0.5 percent to $3,339.60 an ounce, as of 03:50 GMT (currently trading above $3,339). U.S. gold futures rose 0.5 percent to $3,361.20 (currently trading above $3,360). U.S. and Chinese officials said on Tuesday they had agreed on a framework to put their trade truce back on track and remove China’s export restrictions on rare earths, while offering little sign of a durable resolution to longstanding trade differences.
Read more: Dubai 24-carat gold price today declines amid ongoing U.S.-China trade negotiations
World Bank cuts global growth forecast amid trade uncertainty
At the end of two days of intense negotiations in London, U.S. Commerce Secretary Howard Lutnick said that his team plans to present the framework to President Donald Trump for approval prior to implementation, while the Chinese delegation will similarly seek an endorsement from President Xi Jinping. “We know that U.S. and Chinese negotiators have agreed on a ‘framework’, but until Trump or Xi approves them, uncertainty lingers. And that uncertainty is supporting gold heading into the inflation figures,” Reuters reported, quoting Matt Simpson, senior analyst at City Index.
The U.S. and China had imposed tit-for-tat tariffs in April, sparking a trade war. Following talks in Geneva last month, both nations agreed to cut tariffs back from triple-digit levels.
The World Bank on Tuesday slashed its global growth forecast for 2025 by 0.4 percent to 2.3 percent, saying that higher tariffs and heightened uncertainty posed a “significant headwind” for nearly all economies. The U.S. consumer price index (CPI) report due at 12:30 GMT could give investors more guidance on the U.S. Federal Reserve‘s policy path. The Federal Reserve will keep interest rates on hold for at least another couple of months, according to most economists polled by Reuters, as risks linger that inflation may resurge due to Trump’s tariff policies. Elsewhere, spot silver was unchanged at $36.56 per ounce, platinum also steadied at $1,222.14, while palladium was up 0.6 percent to $1,066.19.
