Investors adopt a cautious stance ahead of the U.S.-China summit, lifting gold prices amid geopolitical and inflation concerns.
Gold prices (XAU/USD) rose to near $4,700 in early Asian trading Thursday as markets turned cautious before the Trump-Xi summit in Beijing. The meeting aims to stabilize ties between the world’s two largest economies, with discussions reportedly exploring tariff reductions on $30 billion in goods.
U.S. wholesale inflation surged to 6.0% year-over-year in April, exceeding expectations and marking the highest level since December 2022. The jump, driven by rising oil prices and Middle East tensions, reinforced expectations that the Federal Reserve will maintain elevated interest rates, pressuring non-yielding assets like gold.
The U.S. April Retail Sales report, due later Thursday, will provide further insight into consumer demand amid persistent inflationary pressures.