Gold prices remained little changed on Thursday as investors weighed high-level talks between US President Donald Trump and Chinese President Xi Jinping, while also monitoring geopolitical tensions involving Iran. Spot gold was steady at $2,920 an ounce, with US gold futures for June delivery edging lower. The market appeared to be consolidating as traders awaited clearer signals from the US-China discussions, with analysts noting a mild short-term downside bias that could present opportunities for bulls.
The Trump-Xi summit, a critical juncture in US-China economic relations, has drawn global attention. Investors are seeking any indication that the talks could ease trade strains between the two largest economies or address Middle East conflicts. However, market observers remain cautious, citing the low likelihood of meaningful backing from Beijing. This has left gold caught between lingering safe-haven demand and hesitation to chase prices higher without fresh catalysts.
US economic data also stayed in focus. Producer prices posted their biggest annual increase in four years in April, reinforcing persistent inflation pressures. The Senate’s approval of Kevin Warsh as Federal Reserve chair added to uncertainty, as the central bank grapples with stronger price pressures that may delay rate cuts. Higher interest rates typically weigh on non-yielding gold, contributing to Thursday’s muted price action. In physical markets, gold discounts in India widened to a record of more than $200 an ounce after an import duty hike dampened demand. Elsewhere, spot silver fell 0.9% to $87.18 an ounce, platinum slipped 0.4% to $2,129.15, and palladium declined 0.3% to $1,495.75.
