WASHINGTON (dpa-AFX) - Gold held near one-week high on Thursday, with trade uncertainties, rising U.S.-Iran tensions, soft U.S. CPI data and expectations for two Fed reductions by the end of 2025 offering some support.
Spot gold was marginally higher at $3,35.53 per ounce in European trade while U.S. gold futures were up 1.1 percent at $3,380.65.
There is considerable ambiguity over the U.S.-China trade deal in the wake of conflicting claims about tariff rates and lack of confirmation from Beijing.
U.S. President Donald Trump did not fully spell out what concessions the U.S. made. Also, the framework must be approved by the heads of state of the two countries.
Adding to investor anxiety, Trump said he would notify trading partners within the next one to two weeks about the new unilateral tariff rates, with the choice to accept or reject them.
Elsewhere, in a sign of growing regional tensions, Iran said it will strike U.S. bases in the Middle East if nuclear talks fail and conflict arises with Washington.
As hopes of a diplomatic resolution erode, the White House has also warned of military measures and decided to move embassy staff and dependents partly due to Israeli preparations for attack on Iran.
Meanwhile, softer U.S. inflation released on Wednesday boosted the odds of Fed rate cuts. Money markets now price in about two Fed reductions by the end of 2025, with traders boosting bets on a September cut to around 75 percent.
The dollar was moving lower in European trade ahead of the U.S. producer price index report due later in the day.
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