FX.co ★ Gold Rises as Investors Buy the Dip

On Wednesday, gold prices climbed to approximately $3,320 per ounce as investors capitalized on its recent decline by purchasing at lower prices. However, these gains faced limitations due to the easing of trade tensions between the United States and the European Union. In recent developments, U.S. President Donald Trump deferred the implementation of threatened 50% tariffs on EU imports until July 9, allowing for more negotiation time. Additionally, the dollar strengthened following data indicating a significant rebound in U.S. consumer confidence in May from a nearly five-year low, rendering gold more expensive for those holding other currencies. Meanwhile, Neel Kashkari, President of the Minneapolis Federal Reserve, advocated on Tuesday for maintaining steady interest rates until the impact of higher tariffs on inflation becomes clearer. Investors are now eagerly awaiting the release of the Federal Reserve's latest meeting minutes later today and the PCE inflation data on Friday, seeking further insights into the central bank’s potential rate movements.