Gold Gains on Inflation and U.S.-China Questions

Questions about the longevity and future prospects of a U.S.-China trade deal gave gold a boost, with the front-month futures contract closing up 0.6% to $3,240.30 a troy ounce.

"Despite the de-escalation in tensions between the U.S. and China, questions remain regarding the longevity of the agreement, which could maintain gold's attractiveness as a safe-haven asset," Quasar Elizundia of Pepperstone says in a note. "While the tariff reductions have temporarily boosted market sentiment, uncertainties about the deal could continue to weigh on investor confidence."

Gold also gained after inflation figures show the effects of the beginning of President Trump's tariff policies.