Gold Prices Steady Ahead of Trump-Xi Meeting as Inflation and Oil Concerns Persist

Gold prices remained largely unchanged during Asian trading on Thursday as investors awaited a highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing. Market participants are closely watching the summit for developments related to U.S.-China trade relations, the Iran conflict, and ongoing global supply chain disruptions.

Spot gold held steady at $4,691.12 per ounce, while U.S. gold futures slipped 0.2% to $4,697.97. The precious metal had already declined over the previous two sessions as traders adopted a cautious approach ahead of the talks between the world’s two largest economies.

Despite some support from geopolitical tensions in the Middle East, gold prices faced pressure from stronger-than-expected U.S. inflation data and a firmer U.S. dollar. Concerns surrounding disruptions near the Strait of Hormuz, a vital oil shipping route, continued to fuel fears of rising global energy costs and supply shortages.

Recent U.S. economic data showed producer prices rising at their fastest pace since 2022, while consumer inflation also accelerated due to higher energy prices linked to the Iran conflict. The inflation surge strengthened expectations that the Federal Reserve may keep interest rates elevated for a longer period, reducing demand for non-yielding assets such as gold.

Meanwhile, the U.S. Dollar Index hovered near a two-week high, making gold more expensive for international buyers and limiting further gains in bullion prices.

Oil prices staying above $100 per barrel also remained a major concern for financial markets, as investors worried prolonged supply issues in the Gulf region could intensify inflationary pressures worldwide.

In addition, India recently increased import duties on gold and silver to curb overseas purchases and protect foreign exchange reserves. The decision may weaken physical demand in one of the world’s largest gold-consuming countries.

Elsewhere in the precious metals market, silver gained 0.1% to $87.66 per ounce, while platinum rose 0.3% to $2,141.60 per ounce.