The U.S. and Britain are expected to announce a deal to lower tariffs on some goods on Thursday.
Trump posted on Truth Social that he will hold a press conference regarding a “major trade deal”, while British Prime Minister Keir Starmer is also expected to provide an update on the U.S.-UK trade discussions later in the day.
The trade negotiations talks between the U.S. and China in Switzerland this weekend are also keeping investors on their toes.
Trump said that China initiated these discussions, reiterating his unwillingness to reduce import tariffs on Chinese goods as a negotiation strategy.
The Federal Reserve held steady on interest rates on Wednesday but warned of increased risks of inflation and unemployment, as its policymakers grapple with the impact of Trump’s tariffs.
Gold, a non-yielding asset that serves as a hedge against political and financial uncertainties, thrives in a low-interest-rate environment.
Meanwhile, China’s central bank has approved foreign exchange purchases by commercial banks to pay for gold imports under recently increased quotas, two people with direct knowledge of the matter said on Wednesday.
Elsewhere, Pakistan shot down 12 drones from India that violated its airspace, the military said a day after Indian strikes on multiple targets in the country.
“Rising tensions between India and Pakistan will continue to attract attention, potentially leading to an unquantifiable level of safe haven demand,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Spot silver fell 0.4% to $32.34 an ounce, platinum gained 0.1% to $975.08 and palladium dropped 1.5% to $957.50.