FX.co ★ Gold Edges Higher

On Wednesday, gold prices rose to approximately $3,330 per ounce following a two-day slump, as investors evaluated an increase in U.S. inflation alongside developments in international trade. The Consumer Price Index (CPI) for June climbed at the fastest rate in five months, indicating that tariffs might be influencing inflationary pressures. Despite President Trump's calls for rate cuts, Federal Reserve officials exercised caution due to inflation concerns. Investors are now looking forward to the Producer Price Index (PPI) report for additional insights. Trade tensions persist after President Trump announced a 19% tariff on goods from Indonesia and indicated that further tariff notifications would be issued to smaller nations. Previously, he had threatened 30% tariffs on imports from Mexico and the European Union starting August 1, but he later expressed willingness to engage in discussions. Moreover, the World Gold Council revealed that in May, net gold purchases by central banks amounted to 20 tonnes, driven by Kazakhstan, Turkey, Poland, and Singapore. China continued its purchasing trend in June, bringing the total acquisitions since November to 34.2 tonnes.