Gold prices extended losses on Wednesday as stronger-than-expected US inflation data reduced expectations of Federal Reserve interest rate cuts, while investors continued monitoring geopolitical tensions in the Middle East and the upcoming summit between the US and China.
Spot gold fell 0.3 percent to $4,702.09 per ounce as of 0423 GMT, retreating further after touching a three-week high in the previous session. Meanwhile, US gold futures for June delivery rose 0.5 percent to $4,710.70 per ounce.
Recent economic data showed US consumer inflation accelerated further in April, recording its largest annual increase in three years. The stronger inflation reading has prompted traders to scale back expectations for lower interest rates this year, with markets now pricing in a higher possibility that the Federal Reserve could maintain tighter monetary policy for longer.
Investors are also closely watching the release of the US Producer Price Index later in the day, alongside the planned meeting between Donald Trump and Xi Jinping in Beijing from Thursday to Friday.
Trump said on Tuesday he does not believe he will require China’s assistance in resolving tensions involving Iran, even as concerns persist over regional stability and the security of the Strait of Hormuz, one of the world’s most important oil shipping routes.
Meanwhile, India announced revised customs duty rates on precious metals and findings under Notification 16/2026-Customs, effective May 13.
According to the update from the Ministry of Finance, gold and silver findings will now attract a 5 percent customs duty, while platinum findings will face a 5.4 percent duty. Precious metal spent catalysts will be subject to a 4.35 percent duty, subject to compliance criteria.
Indian gold and silver futures also surged after New Delhi earlier raised import tariffs on precious metals to 15 percent from 6 percent as part of efforts to curb overseas purchases and reduce pressure on foreign exchange reserves.
Among other precious metals, spot silver rose 0.2 percent to $86.68 per ounce after touching its highest level since March 11 earlier in the session. Platinum declined 1 percent to $2,106 per ounce, while palladium traded largely unchanged at $1,490.86.
