Spot Gold gained modestly on Thursday on the back of a softer US Dollar, as market players focused on the summit between US President Donald Trump and Chinese President Xi Jinping.
According to media reports, the United States and China are examining a potential framework that would reduce tariffs on approximately $30 billion of goods, excluding items linked to national security. The move is being viewed as an attempt to ease bilateral strains and foster more stable economic ties.
Trump is also expected to seek assistance from China to resolve the prolonged conflict with Iran. However, some analysts are skeptical that Trump will receive the support he wants.
Washington has stepped up pressure on Tehran by announcing new sanctions on entities involved in shipping Iranian crude to China and issuing warnings to banks that facilitate such transactions.
“Gold seems to be consolidating at the moment as everybody is looking at what’s going to happen in the high-level talks between the U.S. and China,” GoldSilver Central Managing Director Brian Lan was quoted as saying by Reuters.
“(Gold) is a bit downward-biased and I think that is also a window for investors who are looking to come into the metal,” Lan pointed out.
On the data front, US producer prices rose at their sharpest rate in four years in April – another indication of mounting inflationary pressure.
Traders have largely priced out Fed interest rate cuts for 2026, while the probability of a hike by December stood at 28%.
Spot Gold was last up 0.21% on the day to trade at $4,698.85 per troy ounce.
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