Gold Prices Rise After U.S.-China Tariff Deal and Lower Inflation

Gold prices jumped 0.4% to $3,246.95 an ounce on Tuesday, recovering from a 3% tumble the day before. Bargain hunters stepped in, and weaker-than-expected U.S. inflation numbers gave gold a lift. U.S. gold futures also climbed 0.6% to $3,247.8, showing traders are jumping back in. Mondays drop came after news of a U.S.-China trade agreement, which eased tensions but left questions for those making daily trading calls.

The U.S. and China struck a 90-day deal to cool their trade war, cutting U.S. tariffs on Chinese goods from 145% to 30% and Chinese tariffs on U.S. products from 125% to 10%. Even so, Bart Melek from TD Securities warned that the 30% U.S. tariff still hurts the economy, keeping gold‘s safe haven shine. Social media buzz on X, like a post from @Sino_Market noting gold’s 0.21% rise to $3,242.69 after inflation data, shows traders are watching trade moves closely.

The U.S. Consumer Price Index (CPI) rose just 0.2% in April, less than the 0.3% experts predicted, with yearly inflation at 2.3%—the lowest since February 2021. Core CPI, which skips food and energy, hit 2.8% as expected. Jim Wyckoff from Kitco Metals said this report is “somewhat positive” for metals, as it fuels bets on Federal Reserve rate cuts in September. Lower rates make gold, which doesn‘t pay interest, more appealing. X posts, like @Investingcom’s update on soaring gold futures, back this upbeat mood.

Gold‘s 2025 surge, hitting all-time highs, has been driven by fears of an economic slowdown from Trump’s tariffs, heavy central bank purchases, and global tensions. Gold-backed ETFs saw 115 tons of inflows in April, with China adding nearly 65 tons, according to @amit_gupta444 on X. But Monday‘s trade deal news dulled gold’s safe-haven demand, sparking the 3% dip. Experts warn tariffs could push inflation up by summer, with Capital Economics forecasting core CPI at 3.5% by December, which might reignite golds allure if uncertainty grows.

Other metals also rose: silver gained 1% to $32.89, platinum 1.4% to $985.92, and palladium 1% to $955.15, showing market confidence. Still, traders should stay sharp. Yale Budget Lab says Trump‘s tariffs could raise prices by 1.7%, hitting households with a $2,800 yearly cost. Goldman Sachs pegs recession odds at 35%, lower thanks to the tariff cuts. Federal Reserve Chair Jerome Powell’s cautious stance on rate cuts adds uncertainty, which could limit golds gains.

Trading Tips: Gold‘s path depends on U.S.-China trade talks and key data like June’s CPI and jobs reports. Dips below $3,250 could be buying opportunities, but keep an eye on trade news and Fed moves. If inflation spikes or trade issues flare up, gold might hit $3,400. If tensions ease, prices could slip to $3,200. Adding silver or platinum to your portfolio could balance out market swings.