Gold steadies as easing US-EU trade tensions cap gains
Gold steadied on Wednesday, as investors bought on the dip, although gains were capped on easing U.S.-EU trade tensions, with the market now awaiting the upcoming U.S. core Personal Consumption Expenditures (PCE) report for interest rate clues.
Spot gold was flat at $3,297.19 an ounce, as of 0413 GMT. Bullion fell more than 1% in the previous session.
U.S. gold futures were down 0.1% to $3,296.
In the latest move, U.S. President Donald Trump backed down from his 50% tariff threat against the European Union, delaying its implementation until July 9 to allow for negotiations between the White House and the 27-nation bloc.
"Gold's dip below $3300 saw it attracting some buyers. However, the broader market is still feeling generally upbeat now that the U.S.-EU trade tensions have eased, which is capping the extent of gold's upside run for now," said Tim Waterer, chief market analyst at KCM Trade.
"If support in the $3,250-$3,280 region continues to hold, then gold is well-placed for potentially another run towards $3,400 if risk appetite fades."
The market is now awaiting U.S. PCE data for April, due Friday, to assess the Federal Reserve's potential rate cut trajectory.
Meanwhile, U.S. consumer confidence rebounded in May, ending a five-month slide, supported by a temporary truce in the U.S.-China trade war, according to data.
The Fed has kept its policy rate unchanged at 4.25%-4.50% since December, as officials pause for more clarity on the economic and price impact of Trump's tariffs.
"More decisive moves in gold one way or the other may need to wait until we get a read on the Nvidia results and U.S. Core PCE on Friday," Waterer said.
Spot silver was steady at $33.28 an ounce, platinum was unchanged at $1,079.72 and palladium fell 0.3% to $975.14.
