Gold prices fell on Wednesday, influenced by easing US-China trade tensions and softer-than-expected US inflation data. Spot gold decreased by 0.7% to $3,226.11 per ounce, while US gold futures dropped 0.6% to $3,229.50.
The recent 90-day tariff truce between the US and China, which includes significant tariff reductions, has improved market sentiment and reduced gold’s appeal as a safe-haven asset. Additionally, the US Consumer Price Index rose by 0.2% in April, below the anticipated 0.3%, further diminishing demand for gold.
Investors are now focusing on upcoming US Producer Price Index data for further insights into inflation trends and potential Federal Reserve policy actions.
