Gold ekes out gain as focus turns to US tariff negotiations

Gold, often considered a safe haven during times of economic uncertainties, tends to do well in a low-interest-rate environment.

Gold prices rose on Wednesday as investors digested data showing an increase in US consumer prices last month and waited for further clarity on US President Donald Trump's trade policy.

Spot gold was up 0.4% at $3,334.12 per ounce, as of 0401 GMT. US gold futures edged 0.1% higher to $3,340.90.

"Gold at this moment is consolidating with a slight downward bias, especially with a stronger dollar," said Brian Lan, managing director at GoldSilver Central, Singapore.

"However, many countries are still negotiating with the US on the tariffs. There are still a lot of uncertainties in the market and many are looking for safe havens."

Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1. However, Trump said on Monday he was open to further negotiations.

US consumer prices increased in June by the most in five months amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation and potentially keeping the Federal Reserve on the sidelines until September.

Following the data, Trump said that consumer prices were low and the Fed should bring down interest rates now.

The US central bank will probably need to leave rates where they are for a while longer to ensure inflation stays low in the face of upward pressure from the Trump administration's tariffs, Dallas Fed Bank President Lorie Logan said.

Gold, often considered a safe haven during times of economic uncertainties, tends to do well in a low-interest-rate environment.

Market focus now shifts to the US Producer Price Index data due at 1230 GMT on Wednesday for more cues.

Keeping gold's gains in check, the dollar and benchmark US 10-year Treasury yields held near multi-week highs. [USD/] [US/]

Elsewhere, spot silver gained 0.3% to $37.82 per ounce. Platinum rose 0.2% to $1,379.46 and palladium climbed 0.4% to $1,210.66.