Insights 
VT 
Key Points
- Spot gold rises 0.7% to $3,344.93; U.S. gold futures up to $3,366.40
- Traders await U.S. CPI figures amid tariff-driven inflation concerns
Gold prices edged higher on Wednesday, reflecting growing investor caution as optimism around the China-U.S. trade framework gave way to renewed uncertainty. Spot gold rose 0.7% to $3,344.93 an ounce by 0808 GMT, while U.S. gold futures advanced by the same margin to $3,366.40. The metal found support as traders braced for U.S. inflation data that may shape expectations around Federal Reserve policy in the months ahead.
Tuesday’s joint statement from Washington and Beijing outlined a framework to resume the Geneva trade agreement and lift China’s rare earth export curbs. While the headlines initially encouraged risk sentiment, the absence of concrete timelines or enforcement mechanisms tempered any lasting optimism. Previous rounds of tit-for-tat tariffs, imposed as recently as April, have made traders wary of relying on diplomatic breakthroughs.
All eyes now turn to the upcoming U.S. CPI print, expected at 1230 GMT. Markets anticipate an increase, which would likely limit expectations for near-term rate cuts from the Federal Reserve. Traders are pricing in an extended pause in monetary policy adjustments, especially as President Trump’s tariff-driven inflation risk continues to weigh on the outlook.
Technical Analysis
Gold (XAUUSD) continues to push higher, closing at 3345.79 after rebounding strongly from the 3302 support area. The uptrend is supported by higher lows and firm moving average alignment, with price now testing the key resistance at 3349.18—a level that previously capped bullish momentum.
Picture: Gold holds gains as momentum builds near 3349, as seen on the VT Markets app
The MACD indicator is showing mild bullish momentum, with a recent crossover above the signal line and histogram bars moving into positive territory. The short-term moving averages (5 and 10) are also rising above the 30-period MA, reinforcing upward pressure.
However, price has stalled just beneath the resistance zone and may require stronger volume or a catalyst to break above 3349.18. If the breakout fails, a minor pullback to the 3330–3325 region could follow. On a successful breach, bulls may eye 3360 as the next upside level.
Should the CPI data show stronger-than-expected inflation, gold may retrace slightly as rate cut expectations are pushed further out. However, with trade and political risks unresolved, safe-haven flows could remain in play.
