US, China reach framework deal to ease export restrictions
Trump, Xi to review, approve framework agreement, officials says
U.S. consumer price index data due at 1230 GMT
June 11 – Gold prices rose on Wednesday as uncertainty surrounding the finalisation of a U.S.-China trade agreement weighed on sentiment and fuelled some safe-haven buying, with investors awaiting key U.S. inflation data for further market direction.
Spot gold gained 0.5% to $3,339.60 an ounce, as of 0350 GMT. U.S. gold futures rose 0.5% to $3,361.20.
U.S. and Chinese officials said on Tuesday they had agreed on a framework to put their trade truce back on track and remove China’s export restrictions on rare earths, while offering little sign of a durable resolution to longstanding trade differences.
At the end of two days of intense negotiations in London, U.S. Commerce Secretary Howard Lutnick said that his team plans to present the framework to President Donald Trump for approval prior to implementation, while the Chinese delegation will similarly seek an endorsement from President Xi Jinping.
“We know that U.S. and Chinese negotiators have agreed on a ‘framework’, but until Trump or Xi approves them, uncertainty lingers. And that uncertainty is supporting gold heading into the inflation figures,” said Matt Simpson, a senior analyst at City Index.
The U.S. and China had imposed tit-for-tat tariffs in April, sparking a trade war. Following talks in Geneva last month, both nations agreed to cut tariffs back from triple-digit levels.
The World Bank on Tuesday slashed its global growth forecast for 2025 by 0.4% to 2.3%, saying that higher tariffs and heightened uncertainty posed a “significant headwind” for nearly all economies.
The U.S. consumer price index report due at 1230 GMT could give investors more guidance on the U.S. Federal Reserve’s policy path.
The Federal Reserve will keep interest rates on hold for at least another couple of months, according to most economists polled by Reuters, as risks linger that inflation may resurge due to Trump’s tariff policies.
Elsewhere, spot silver was unchanged at $36.56 per ounce, platinum also steadied at $1,222.14, while palladium was up 0.6% to $1,066.19.
This article was generated from an automated news agency feed without modifications to text.
