Gold prices edge higher.
Gold prices rose slightly in Asian trade on Wednesday, recouping some overnight losses after stronger-than-expected U.S. consumer inflation data boosted the dollar and dented bets that interest rates will fall in the near-term.
Broader metal prices also rose on Wednesday, recovering some recent losses. Platinum and silver tumbled from recent peaks this week, as their outperforming gold drew in some profit-taking.
Still, safe haven demand for gold remained relatively underpinned by persistent concerns over U.S. President Donald Trump’s trade tariffs. Growing uncertainty over the Federal Reserve’s independence, amid growing calls from Trump and his allies for Chair Jerome Powell’s ouster, also factored into haven demand, as did tensions between Russia and Ukraine.
Gold remains rangebound, other precious metals outperform
Despite seeing some gains this week, gold remained squarely within a $3,300-$3,500/oz trading range seen over the past three months. The yellow metal struggled to make headway amid increased speculation that gold prices were overbought after hitting record highs in April, with the yellow metal largely lagging other precious metals in recent months.
European stocks slip lower.
European stocks slipped lower Wednesday, with investors fretting over elevated inflation while digesting more corporate results as the new earnings season kicks into gear.
Sentiment has fallen in Europe this week after U.S. President Donald Trump announced he would be introducing 30% tariffs on imports from the European Union, effective from the start of August.
European ministers remained convinced they can bring Trump back from the brink before the deadline and reach a deal that would keep the $1.7 trillion two-way trading relationship broadly intact, but uncertainty reigns.
This has resulted in the outlook for European corporate health deteriorating, with these companies expected to report a drop of 0.7%year-on-year in second-quarter earnings, on average, according to LSEG I/B/E/S data, below the 0.2% decrease expected a week ago.
Oil prices gain on summer demand.
Oil prices rose on Wednesday, boosted by expectations of firm summer demand in the world’s two largest consumers, the United States and China, though gains were capped by analysts’ caution about the wider economy.
Prices have seesawed in a tight range as signs of steady demand from an increase in travel during the Northern Hemisphere summer have competed with concerns that U.S. tariffs on trading partners will slow economic growth and fuel consumption.
Brent crude futures rose 36 cents, or 0.5%, to $69.07 a barrel by 0646 GMT. U.S. West Texas Intermediate crude futures were up 47 cents, or 0.9%, to $66.99.
That reversed two days of declines as the market downplayed the potential for supply disruptions after U.S. President Donald Trump threatened tariffs on purchases of Russian oil.
Major oil producers are pointing to signs of better economic growth in the second half of the year while data from China showed consistent growth.
“Strong seasonal demand is currently providing upward momentum to oil prices, as summer travel and industrial activity peak,” LSEG analysts said in a note.
“Increased gasoline consumption, especially in the U.S. during the Fourth of July holiday period, has signalled robust fuel demand, helping offset bearish pressures from rising inventories and tariff concerns.”
China data showed growth slowed in the second quarter, but less than feared, in part because of frontloading to beat U.S. tariffs. That eased some concerns about the economy of the world’s largest importer of crude.
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