FX.co ★ Gold Steady as US-China Trade Talks Progress

Gold prices remained steady just below $3,330 per ounce on Wednesday, as advancing US-China trade discussions reduced demand for the safe-haven asset. Officials from the two countries extended their talks into a second day in London, achieving a preliminary agreement to enact their earlier consensus reached in Geneva. Although specifics have not been disclosed, US negotiators "absolutely expect" the framework to tackle rare earth trade issues effectively. Both parties will seek approval from their respective leaders before proceeding with implementation. Nonetheless, apprehensions regarding tariff impacts persist, as the World Bank has revised its 2025 global growth projection downwards by 0.4 percentage points to 2.3%, underscoring escalating duties and increasing risks as significant challenges for many economies. Investors are also paying close attention to the forthcoming US inflation data for clues about the economic consequences of recent tariffs and indications of the Federal Reserve’s monetary policy trajectory.