FX.co ★ Gold Gains on Trade Talk Doubts

Gold prices climbed to approximately $3,390 per ounce on Thursday, recovering from prior session declines, as uncertainties surrounding US-China trade negotiations enhanced the metal’s attractiveness as a safe-haven asset. In a recent statement, President Trump indicated that he is unwilling to reduce the United States' 145% tariffs on China to facilitate progress in trade discussions with Beijing. This announcement comes ahead of a planned meeting between US and Chinese officials in Switzerland, which has diminished expectations for a substantial breakthrough. Concurrently, the Federal Reserve has maintained its benchmark interest rate unchanged, aligning with market anticipations, and has highlighted increasing risks related to inflation and unemployment, which underscores a cautious approach in contemplating future rate alterations. Fed Chair Jerome Powell further affirmed that the central bank is not currently contemplating a proactive rate cut to mitigate the potential economic repercussions of Trump’s tariff policies.