Gold prices rebounded to approximately $3,350 per ounce, recovering from a prior session decline, as investors anticipated the release of the US consumer inflation report. Market sentiment was influenced by developments including clarification around tariffs, an extension of the trade truce between the US and China, and anticipation of a meeting between US and Russian leaders to discuss the conflict in Ukraine.
- Gold prices increased to roughly $3,350 per ounce on Tuesday.
- The price rise followed a 1.6% drop in gold prices on Monday.
- The prior drop occurred after President Trump clarified that gold would not be subject to tariffs.
- President Trump extended a trade truce with China for 90 days, easing economic tensions.
- Investors are watching for the US consumer inflation report for insights on the Federal Reserve’s interest rate policy.
- A meeting between President Trump and President Putin is scheduled for August 15 in Alaska to discuss the war in Ukraine.
The confluence of factors creates a complex environment for gold. Economic policy decisions and geopolitical events clearly impact its value. Traders are carefully monitoring economic data releases to better understand the future direction of monetary policy and assess the attractiveness of holding gold. The evolving political landscape is also being watched for its potential impact on risk sentiment and safe-haven demand for the precious metal.