(Bloomberg) — Gold edged higher, after falling 1.3% in the previous session when traders booked profits from its latest record-breaking run.
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Bullion traded near $2,925 an ounce, about $30 shy of Monday’s fresh all-time high. It’s been supported in recent days by weak US data that’s boosted hopes for a Federal Reserve interest rate cut as soon as July, and President Donald Trump’s increasing tariff threats that have increased haven demand.
Prices have also been bolstered by renewed interest in bullion-backed exchange-traded funds. Last week, net inflows were the largest since 2022, according to data compiled by Bloomberg.
ETF buyers could “drive the next leg higher in gold, and could more than offset weak technical trends and a weak physical market,” Standard Chartered Plc analyst Suki Cooper said in a note.
Investors were digesting Tuesday’s consumer confidence data, which fell the most since August 2021. The figures followed recent disappointments on the retail, services and housing fronts — prompting traders to boost their bets on Fed rate cuts this year. Lower borrowing costs tend to benefit gold, as it doesn’t pay interest.
Traders were also monitoring fresh trade threats from Trump, after the president on Tuesday signed an executive action directing the Commerce Department to examine possible copper tariffs.
Looking ahead, investors will be analyzing Friday’s core personal consumption expenditures price index, the Fed’s preferred inflation gauge, for clues about the central bank’s monetary policy trajectory.
Spot gold was up 0.3% to $2,924.36 an ounce at 8:53 a.m. in Singapore. The Bloomberg Dollar Spot Index was down 0.1%. Silver was little changed, while platinum and palladium dipped.
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