Gold prices hovered within a narrow range during Asian trading hours on Wednesday, as market sentiment improved amid speculation of a potential meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
Despite the slight boost in risk appetite, gold remained elevated due to continued demand for safe-haven assets, driven by ongoing uncertainty surrounding the U.S. economy—particularly after Trump officially doubled tariffs on steel and aluminum imports.
Geopolitical instability also supported gold, as conflict between Russia and Ukraine intensified and reports indicated that nuclear negotiations between Iran and the U.S. were collapsing.
Spot gold held steady at $3,353.71 per ounce, while August gold futures were flat at $3,377.72 per ounce as of 00:51 ET (04:51 GMT).
Gold stabilizes as Trump-Xi talk hopes lift risk appetite
Gold’s limited movement was mainly attributed to an uptick in investor risk-taking after the White House signaled that Trump and Xi would speak later this week.
This dialogue could revive stalled trade discussions between the U.S. and China. Although a temporary tariff reduction agreement was reached in May, markets remain cautious amid doubts over a long-term resolution.
Gold continued to attract buyers this week, especially after Ukraine escalated its military campaign against Russia, including an underwater blast targeting a strategic Crimean bridge.
Gold has climbed nearly 2% so far this week.
Dollar recovery weighs on metals market
The U.S. dollar regained some ground on optimism around potential U.S.-China trade discussions and ahead of Friday’s critical nonfarm payrolls report.
Comments from Federal Reserve officials reaffirming a pause in interest rate changes further supported the dollar.
A firmer dollar exerted downward pressure on metal prices. Platinum futures edged up 0.4% to $1,079.40 per ounce, while silver held steady at $34.618 per ounce.
Copper prices, however, gained on hopes of improving economic conditions in China if U.S.-China talks progress. London Metal Exchange copper futures increased 0.2% to $9,643.10 per ton, and U.S. copper futures rose by the same margin to $4.8750 per pound.
