Gold Gains Amid US Inflation Data, US-China Trade Talks

Gold prices have shown modest gains recently, supported by ongoing US-China trade talks and anticipation of key US inflation data, specifically the May Consumer Price Index (CPI). The provisional trade agreement reached between the US and China, including the removal of export restrictions on rare earths, has eased some safe-haven demand pressures, limiting gold's strength. Market expectations of rising US inflation and potential Federal Reserve interest rate adjustments have created a cautious but positive environment for gold, with resistance around $3,325 to $3,500 and support near $3,200. Technical analysis highlights possible near-term bearish corrections due to overbought signals, though the overall longer-term trend remains positive, bolstered by central banks' gold purchases and global economic concerns. Other precious metals have shown mixed movements, with silver near 13-year highs and platinum and palladium experiencing slight declines. Investors remain watchful of the upcoming CPI report, which will influence the Fed's monetary policy and impact gold's trajectory.