Gold prices saw an increase on wednesday as investors considered the ongoing uncertainty in US-China trade dynamics and a recent court decision affirming Trump-era tariffs. this has boosted the appeal of the precious metal as a safe-haven asset.

Market participants are now keenly awaiting upcoming US inflation figures for further clues about the Federal Reserve‘s potential monetary policy adjustments.

Global spot gold experienced a 0.7% gain, peaking at an intraday high of $3,348 per ounce after starting at $3,322. It was last trading near $3,343 per ounce, according to Gold Bullion.

On Tuesday, US and Chinese officials announced a preliminary agreement to revive stalled trade discussions and ease Chinese restrictions on rare earth metal exports, following negotiations in LONDON. The agreements are pending final approval from US President Donald Trump and Chinese President Xi Jinping.

The delay in formal approval has amplified market unease, bolstering gold’s upward trajectory in Wednesday trading.

This follows tariff escalations between the two nations that began in April, leading to a trade war. Talks in Geneva last month resulted in a preliminary agreement to lower tariffs from their previous highs.

Gold also benefited from heightened risk aversion in US futures markets after an appeals court largely upheld President trump’s previous tariff measures targeting key trading partners. The ruling reinforced expectations that these tariffs will remain in effect for the foreseeable future.

Attention is now focused on the release of the US Consumer Price Index (CPI) inflation data,scheduled for later on Wednesday. Investors are carefully monitoring for indications of persistent price pressures that could influence the Fed’s rate decisions in the coming months.

The data is anticipated to reveal a modest increase in inflation for May, generally consistent with 2025 forecasts. Price increases in the US have recently stabilized, with Trump-era tariffs contributing to ongoing upward pressure on consumer prices.

The World Bank on Tuesday revised its global growth forecast for 2025 downward by 0.4 percentage points to 2.3%, citing increasing trade barriers and growing economic uncertainty as meaningful challenges for most economies.

Similarly, ANZ Bank’s short-term forecast suggests that gold prices may stabilize before rising again, potentially reaching $3,600 per ounce by the end of the year.

Gold Prices in Egypt Show Sideways Movement

In Egypt, gold prices continue to trade sideways, with no clear momentum in either direction.

in Egypt,gold prices are exhibiting sideways movement,lacking clear directional momentum. This is largely attributable to fluctuations in international gold markets and the continued 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 subdued movement reflects the broader sideways trend in global gold prices, combined with the gradual strengthening of the Egyptian pound, which is lessening the impact of international price changes on local markets.

The Egyptian Minister of Finance recently announced a $2 billion decline in external debt over the past ten months, resulting from a decrease in foreign borrowing and a resurgence of foreign investor confidence. Increased foreign investment in government debt instruments is expected to enhance stability in Egypt’s financial markets.

This, in turn, is contributing to the steady thankfulness of the pound, which continues to influence local gold pricing dynamics.