Gold Firms as US Tariff Uncertainty, Cooler Inflation Data Lend Support

An employee takes granules of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
An employee takes granules of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
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Gold Firms as US Tariff Uncertainty, Cooler Inflation Data Lend Support

An employee takes granules of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
An employee takes granules of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo

Gold prices edged up on Thursday as persisting uncertainty over tariffs drove safe-haven demand, while a cooler-than-expected US inflation print supported the dollar by bolstering rate cuts expectations.
Spot gold gained 0.1% to $2,934.08 an ounce as of 0745 GMT, while US gold futures eased 0.1% to $2,943.70.
"I think $3,000 is the next logical target, likely to be reached sometime over the next several months," said Marex analyst Edward Meir.
"The CPI data was encouraging but I suspect that the tariff increase has yet to be picked up in the inflation data."
The US consumer price index increased less than expected last month, data showed, but the improvement is likely temporary given the aggressive US import tariffs, which are expected to make most goods more expensive in the months ahead.
Lower inflation leaves more room for the Federal Reserve to cut rates and non-yielding gold thrives in a low-interest rate setting.
Earlier this month, US President Donald Trump triggered a trade war, increasing the tariffs on goods from China to 20% and imposing a new 25% duty on Canadian and Mexican imports.
He later dialed back, providing a one-month exemption for any goods that meet the rules of origin under the US-Mexico-Canada Agreement on trade.
Trump also reversed course on a pledge to double tariffs on steel and aluminium from Canada to 50%, hours after announcing the higher tariffs.
The tariffs are widely expected to stoke inflation and economic uncertainty and had pushed gold to a record high of $2,956.15 on February 24.
Investors now await the US Producer Price Index (PPI) data due at 1230 GMT for further insights into the Fed's monetary policy.
Spot silver fell 0.8% to $32.97 an ounce, platinum lost 0.7% to $977.05 and palladium shed 0.5% to $943.72.



China Retaliates to EU Ban with Import Restrictions on Medical Devices

People walk along Qianmen promenade in Beijing on July 5, 2025. (Photo by Adek BERRY / AFP)
People walk along Qianmen promenade in Beijing on July 5, 2025. (Photo by Adek BERRY / AFP)
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China Retaliates to EU Ban with Import Restrictions on Medical Devices

People walk along Qianmen promenade in Beijing on July 5, 2025. (Photo by Adek BERRY / AFP)
People walk along Qianmen promenade in Beijing on July 5, 2025. (Photo by Adek BERRY / AFP)

China's finance ministry said on Sunday it was restricting government purchases of medical devices from the European Union that exceed 45 million yuan ($6.3 million) in value, in retaliation to Brussels' own curbs last month.

Tensions between Beijing and Brussels have been rising, with the European Union imposing tariffs on China-built electric vehicles and Beijing slapping duties on imported brandy from the bloc.

The European Union said last month it was barring Chinese companies from participating in EU public tenders for medical devices worth 60 billion euros ($70 billion) or more per year after concluding that EU firms were not given fair access in China.

The measure announced by the European Commission was the first under the EU's International Procurement Instrument, which entered into force in 2022 and is designed to ensure reciprocal market access.

China's countermeasures were expected after its commerce ministry flagged "necessary steps" against the EU move late last month.

"Regrettably, despite China's goodwill and sincerity, the EU has insisted on going its own way, taking restrictive measures and building new protectionist barriers," Reuters quoted the commerce ministry as saying in a separate statement on Sunday.

"Therefore, China has no choice but to adopt reciprocal restrictive measures."
The EU delegation office in Beijing did not immediately respond to a request for comment.

China will also restrict imports of medical devices from other countries that contain EU-made components worth more than 50% of the contract value, the finance ministry said. The measures come into force on Sunday.

The commerce ministry said products from European companies in China were not affected.

The world's second- and third-largest economies are due to hold a leaders' summit in China later in July.