Gold prices remained stable in the trading session on Wednesday. According to Reuters, investors are taking advantage of buying when prices fall. However, the increase was limited because trade tensions between the US and the European Union (EU) had eased.
The market is now waiting for the US core consumer inflation (PCE) report. This report will be published later in the week and could provide further cluees on the direction of interest rates.
At 9:30 a.m., the world gold price was listed on Kitco around 3,308.4 USD/ounce. By 10:20 p.m., spot gold prices fell slightly to $3,302.22/ounce. By 15:30, the world gold price increased to 3,317.8 USD/ounce.
US President Donald Trump has recently withdrawn his plan to impose a 50% tax on EU goods, postponing it until July 9 to facilitate negotiations between the White House and the 27-national bloc.
Gold falling below $3,300/ounce has attracted bottom-fishing buying. However, the optimistic sentiment in the market after the US-EU trade tensions cooled down has temporarily limited the increase in gold" - Tim Waterer, market analyst at KCM Trade commented.
If the support zone of $3,250 to $3,280 an ounce remains strong, gold prices could re-establish their upward momentum to $3,400 an ounce in the event of weak market risk sentiment, Waterer said.
Investors are paying attention to US core PCE data for April, expected to be released on Friday, to assess the prospects of interest rate cuts by the US Federal Reserve (FED).
Meanwhile, the US consumer confidence index in May recovered after 5 consecutive months of decline, thanks to a temporary deal amid trade tensions with China.
The Fed has kept interest rates unchanged at around 4.25%-4.50% since December last year and is waiting for more data to assess the economic impact of Mr. Trump's tariff policies.
Its likely that it will be until Nvidias business results and core PCE figures are released on Friday that the gold market will have more noticeable fluctuations, Waterer added.
In other metals, spot silver fell 0.3% to $33.21 an ounce, platinum moved sideways to $1,079.88, and palladium fell 0.3% to $975.79. an ounce.
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