Gold Soars Amid Uncertainty Over US-China Trade Deal

The price of gold soared today amid uncertainty sparked by the U.S.-China trade agreement.

As of 0350 GMT, spot gold was up by 0.5% to $3,339.60 an ounce, while U.S. gold futures soared 0.5% to $3,361.20.

The US and Chinese officials agreed to keep the ball rolling and remove China's export restrictions on rare earths.

Following the conclusion of two-day negotiations in London, U.S. Commerce Secretary Howard Lutnick said that his team is planning to present the framework to President Donald Trump for approval. Similarly, Beijing will also seek approval from President Xi Jinping.

“We know that U.S. and Chinese negotiators have agreed on a 'framework', but until Trump or Xi approves them, uncertainty lingers. And that uncertainty is supporting gold heading into the inflation figures,” said Matt Simpson, a senior analyst at City Index.

The World Bank reduced the growth forecast for 2025 by 0.4% to 2.3% by stating that higher tariffs and heightened uncertainty posed a “significant headwind” for nearly all economies.

The Federal Reserve is also set to keep the interest rates on hold for at least another couple of months, Reuters reported.

Notably, spot silver remained unchanged at $36.56 per ounce, while palladium soared 0.6% to $1,066.19.