Economic summary on the night of May 28 to the morning of May 29: Gold prices increased slightly due to Russia-Ukraine tensions, but the recovery momentum was restrained by the US-EU trade outlook.

Economic summary on the night of May 28 to the morning of May 29: Gold prices increased slightly due to Russia-Ukraine tensions, but the recovery was restrained by the US-EU trade outlook. The British pound cooled down after a series of strong increases, under pressure from the recovery of the USD.

Gold prices recover slightly amid geopolitical tensions

Gold edged up 0.15% to $3,305 an ounce in North American trading on Wednesday, after falling more than 1% the previous day as hopes for a ceasefire between Russia and Ukraine faded, boosting demand for the metal, a safe haven in times of uncertainty.

Russia-West talks remain deadlocked

Russian President Vladimir Putin has demanded that the West commit to not expanding NATO eastward and lift sanctions to end the fighting in Ukraine. However, Europe continues to discuss with the United States about increasing sanctions on Russia, reducing the possibility of an early peace .

US-EU trade hopes make it difficult for gold to break out

Despite the slight increase in gold prices, the recovery prospects are still limited as market sentiment is more optimistic about the possibility of reaching a trade deal between the US and the European Union. Officials from both sides have started regular discussions, while major German automakers such as BMW, Mercedes and Volkswagen are in direct negotiations with the US Department of Commerce.

Mr. Trump promotes the negotiation process

US President Donald Trump said the EU has reached out to schedule early talks. He expressed satisfaction with the 50% tariff imposed on the EU and hoped the two sides would soon reach an agreement to promote global trade.

Next in focus: FOMC minutes and PCE data

Investors are awaiting the release of the Fed's May meeting minutes later tonight for more clarity on why the central bank kept interest rates unchanged at 4.25%–4.50%. The Fed also said it would keep rates on hold for longer as it remains unclear how effective new economic policies under Trump will be. In addition, US PCE inflation data due Friday is expected to have limited impact due to the uncertainty over the impact of tax policy.

Fed's View: Patient on Interest Rates

Minneapolis Fed President Neel Kashkari said it was appropriate to maintain current interest rates amid rising inflation and unemployment risks, stressing that monetary policy should be more cautious as the impact of new tariffs is not yet clear.

Pound corrects after hot rally

The pound edged lower in European trade on Wednesday after a strong rally in recent sessions as investors await fresh signals from the Bank of England (BoE) on the possibility of further interest rate cuts at its June meeting.

The BoE had previously cut interest rates to 4.25%, pledging to be cautious in its next steps. However, a series of positive economic data from the UK has made further cuts less likely. Specifically, services inflation rose to 5.4% in April, while retail sales and GDP growth both beat expectations.

Growth outlook keeps pound steady

The UK economy is showing clear signs of recovery. Retail sales rose 1.2% in April, while GDP in the first quarter rose 0.7% – much higher than the 0.1% increase in the final quarter of last year. As a result, the International Monetary Fund (IMF) has raised its growth forecast for the UK to 1.2% for this year.

Pound under pressure from strong USD

Meanwhile, the British pound continued to correct near 1.3460 against the US dollar in the North American trading session. Previously, the GBP/USD pair had hit a three-year high of 1.3600 earlier in the week.

The renewed strength of the US dollar was the main source of pressure, supported by expectations of an imminent trade deal between the US and the EU, along with a recovery in domestic consumer sentiment.

US consumer confidence recovers strongly

The US Consumer Confidence Index jumped to 98.0 in May, ending a five-month decline. The improvement was attributed to positive developments in US-China trade relations, which contributed to rising expectations among US consumers.

Next in focus: April PCE data

Investors are now looking ahead to the US Personal Consumption Expenditures (PCE) Price Index data due on Friday, but analysts say the data will not have much impact on the Federal Reserve’s policy expectations as the agency remains committed to waiting for more clarity on the impact of President Trump’s new economic policies.

Source: https://baonghean.vn/tong-hop-kinh-te-dem-28-may-rang-sang-29-may-gia-vang-tang-nhe-nho-cang-thang-nga-ukraine-nhung-da-phuc-hoi-bi-kim-ham-boi-trien-vong-thuong-mai-my-eu-10298441.html