Gold prices saw a modest uptick on Wednesdy as investors sought safe-haven assets amid renewed trade tensions between the U.S. and China. The lingering uncertainty over potential tariffs and diplomatic standoffs kept financial markets on edge, boosting demand for gold as a hedge against volatility.
Spot gold rose 0.3% to $2,045 per ounce, while U.S. gold futures climbed 0.4% to $2,050. Analysts noted that concerns over global economic growth, coupled with a weaker dollar, helped support the metal. Investors are closely watching negotiations between the world’s two largest economies, with little clarity on whether recent talks will ease tensions or escalate into broader economic disruptions.
Market sentiment remains fragile, with traders also monitoring the Federal Reserve’s next steps. Interest rate expectations continue to influence gold’s trajectory, as higher rates typically make non-yielding assets like gold less attractive. However, lingering inflation concerns and geopolitical risks could keep demand steady in the short term.
The U.S. dollar index dipped 0.2%, making gold more affordable for overseas buyers. Meanwhile, equities showed mixed performance, with investors weighing the impact of trade policy shifts on corporate earnings and global supply chains. Some analysts suggest that gold could gain further momentum if risk appetite weakens.
Despite recent gains, gold remains below its all-time high of $2,075 per ounce, reached in 2020. Traders are eyeing key resistance levels, with any escalation in trade tensions or unexpected central bank moves likely to determine the next breakout. Short-term volatility is expected as markets digest new economic data.
Looking ahead, gold’s direction will depend on macro developments, including inflation trends and central bank guidance. With uncertainty still looming over global trade, investors may continue to turn to gold as a safe-haven asset, keeping prices supported in the near term.
