Gold Price Steady as US-China Trade Optimism Lifts Sentiment; All Eyes on US CPI Data

Gold Price Steady as US-China Trade Optimism Lifts Sentiment

XAU/USD Bounces from Intraday Lows Near $3,300

Gold prices are holding modest gains on Tuesday, with XAU/USD trading around $3,328, up 0.10% on the day. The precious metal rebounded after briefly dipping to an intraday low near $3,300.

Investor sentiment received a boost after positive developments in US-China trade negotiations. Talks held in London between officials from Washington and Beijing signaled progress, which lifted global risk appetite and pushed US equities higher. This support for risk assets has limited gold’s upside, despite safe-haven flows.

US CPI Data in Focus Ahead of Wednesday’s Release

While market sentiment is currently upbeat, traders are bracing for the US Consumer Price Index (CPI) data for May, due Wednesday. Inflation is expected to have increased, reflecting the impact of ongoing tariffs imposed by the Trump administration.

If CPI surprises to the upside, it could complicate the Federal Reserve’s monetary policy stance. However, current expectations are that the Fed will keep interest rates unchanged at 4.25%-4.50%, maintaining a wait-and-see approach.

Market Outlook: Volatility Likely Ahead of Inflation Report

Although risk appetite is improving, price action remains choppy as markets digest trade developments and anticipate critical inflation data. Gold traders will likely remain cautious, with any CPI surprise having the potential to trigger sharp moves in both commodities and broader financial markets.

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