Gold prices gained modestly on Wednesday as investors capitalized on a recent dip, though the rally was tempered by easing trade tensions between the United States and the European Union. Market participants are now closely watching the upcoming U.S. core Personal Consumption Expenditures (PCE) report for clues about future interest rate moves.
In Dubai, 24 carat gold increased by AED 1.50 to trade at AED 398.00 per gram. Other grades also saw gains: 22 carat gold rose to AED 368.50, 21-carat reached AED 351.75, and 18-carat climbed to AED 301.50.
Spot gold rose 0.3 percent to $3,308.99 an ounce as of 02:37 GMT, recovering slightly from a 1 percent drop in the previous session. U.S. gold futures also gained 0.2 percent to $3,308.30.
Market sentiment improved after U.S. President Donald Trump postponed a planned 50 percent tariff on European Union goods to July 9, allowing time for negotiations with the 27-nation bloc. Tim Waterer, chief market analyst at KCM Trade, told Reuters, “Gold’s dip below $3,300 attracted buyers, but the broader market’s optimism due to eased U.S.-EU tensions is limiting gold’s upside momentum for now.”
Waterer added that if support holds between $3,250 and $3,280, gold could make another push toward $3,400 should risk appetite diminish.
Investors are also awaiting the U.S. PCE inflation data for April, expected Friday, to gauge the Federal Reserve’s approach to interest rates. U.S. consumer confidence improved in May, ending a five-month slide, supported by a temporary pause in the U.S.-China trade conflict. The Fed has kept rates steady at 4.25–4.50 percent since December, waiting for clearer signals on tariff impacts.
“More decisive moves in gold may await Nvidia’s earnings and Friday’s U.S. Core PCE data,” Waterer noted.
Other precious metals showed mixed performance: spot silver was steady at $33.31 an ounce, platinum rose 0.4 percent to $1,084.07, while palladium slipped 0.2 percent to $976.22.
