Gold Bounces Back as Markets Await Critical US Inflation Data

Gold rebounded to $3,255.59 per ounce as markets shift focus to upcoming US inflation data.

The precious metal had previously dropped when the US and China announced a 90-day tariff reduction agreement, with US duties on Chinese goods falling from 145% to 30% and China reducing most levies to 10%.

While the easing trade tensions initially strengthened the dollar and raised Treasury yields (both negative for gold), some investors remain cautious about the trade deal’s limited details.

Traders now expect only two Federal Reserve rate cuts in 2025, which could limit gold’s appeal since it doesn’t pay interest.