Gold Prices Hold Steady Ahead of Trump-Xi Summit
Gold prices traded largely unchanged during Asian trading on Thursday as investors remained cautious ahead of a highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
Spot gold was little changed at $4,691.12 per ounce by 01:21 GMT after declining during the previous two trading sessions. U.S. gold futures also slipped slightly, falling 0.2% to $4,697.97 per ounce.
Markets Focus on Trump-Xi Talks
Investors are closely watching the Trump-Xi summit in Beijing, where discussions are expected to center on trade relations, the Iran conflict, and risks surrounding global supply chains.
Financial markets are looking for signs that the two world leaders could help reduce geopolitical tensions that have recently increased volatility across commodity and currency markets.
Gold, which is traditionally considered a safe-haven asset during periods of uncertainty, continued to receive support from concerns over the ongoing Middle East conflict and disruptions near the Strait of Hormuz, a critical route for global oil shipments.
Inflation Concerns Pressure Gold
Despite geopolitical support, gold prices faced pressure from rising inflation in the United States and a stronger U.S. dollar.
Recent U.S. economic data showed producer prices accelerated in April at the fastest pace since 2022, while consumer inflation also increased more than expected as higher energy prices linked to the Iran conflict spread throughout the economy.
The stronger inflation readings reinforced expectations that the Federal Reserve may keep interest rates elevated for a longer period, reducing the attractiveness of non-yielding assets such as gold.
Stronger Dollar Limits Bullion Gains
The U.S. Dollar Index remained near a two-week high following the inflation data release, making gold more expensive for international buyers and limiting further gains in bullion prices.
Meanwhile, oil prices staying above $100 per barrel continued to fuel concerns among investors that prolonged supply disruptions in the Gulf region could intensify global inflation pressures.
India Raises Import Duties on Precious Metals
Traders also reacted to India increasing import duties on gold and silver in an effort to reduce overseas purchases and support the country’s foreign exchange reserves.
The move could weaken physical demand in one of the world’s largest precious metals markets.
Elsewhere in the metals market, silver prices rose 0.1% to $87.66 per ounce, while platinum gained 0.3% to $2,141.60 per ounce.
