Key Takeaways

• Mixed gold action: Spot gold edged 0.3% higher to $4,700.25 per ounce, while U.S. gold futures eased 0.2% to $4,697.97.
• Sidelined investors: Traders largely stayed on the sidelines during the opening day of the two-day Trump-Xi summit.
• Xi’s positive tone: The Chinese president said both nations had made “positive progress” in recent trade negotiations.
• Trump’s praise: The president called Xi a “great leader” and predicted U.S.-China relations will be “better than ever before.”
• PPI shock: U.S. producer prices jumped at the fastest pace since 2022, while CPI also topped expectations.
• Fed rate cut bets fade: Hot inflation reinforces expectations the Fed will keep rates higher for longer — bad for non-yielding gold.
• Dollar near 2-week high: A stronger DXY is making gold more expensive for overseas buyers.
• Oil above $100: Crude prices remain a key inflation worry as Hormuz disruptions continue.
• India’s tariff bombshell: India raised gold and silver import duties from 6% to 15%, threatening physical demand in a top consumer.
• Silver and platinum fall: Silver dropped 0.6% to $87.01/oz, while platinum dipped 0.4% to $2,128.60/oz.
• Copper near record: LME copper rose to $14,191.48/t Wednesday — close to its all-time high of $14,531.70/t from late January.

Gold prices ticked higher on Thursday as investors assessed details of the key meeting between U.S. President Donald Trump and Chinese President Xi Jinping, while oil-driven inflation concerns weighed on bullion’s appeal.

Spot gold edged 0.3% higher to $4,700.25 an ounce by 02:56 ET (06:56 GMT), after falling in the previous two sessions, while U.S. gold futures edged down 0.2% to $4,697.97.

Investors largely stayed on the sidelines during the opening day of the two-day Trump-Xi meeting.

At the summit, Xi said China and the U.S. had made “positive progress” in recent trade negotiations and stressed that cooperation between the two countries would benefit global stability.

Trump described Xi as a great leader, and said the relationship between the U.S. and China will be “better than ever before.”

Markets were looking for signs that the two leaders could ease the geopolitical tensions that have rattled commodities and currency markets in recent weeks.

Gold — traditionally viewed as a hedge against geopolitical uncertainty — found some support from lingering worries over the Middle East conflict and disruptions around the Strait of Hormuz, a key route for global oil shipments.

Fed Rate Outlook Weighs; India Raises Import Duties on Gold, Silver

However, stronger inflation readings in the United States and a firmer greenback limited bullion’s upside.

U.S. producer prices accelerated in April at the fastest pace since 2022, while consumer inflation also rose more than expected as higher energy costs linked to the Iran conflict filtered through the economy.

The data reinforced expectations that the Federal Reserve could keep interest rates higher for longer — reducing the appeal of non-yielding assets such as gold.

The U.S. Dollar Index hovered near a two-week high after the inflation data, pressuring bullion by making gold more expensive for overseas buyers.

Oil prices holding above $100 a barrel remained a key concern for financial markets, with traders worried that prolonged supply disruptions in the Gulf could worsen global inflation pressures.

Traders also monitored India’s decision to raise import duties on gold and silver to 15% from 6% — a move designed to limit overseas purchases of the metals to aid the country’s foreign exchange reserves.

The move could dampen physical demand in one of the world’s largest bullion-consuming nations.

Metal Markets Slip; Copper Near Record Highs

Elsewhere, silver prices fell 0.6% to $87.01 per ounce, while platinum dipped 0.4% to $2,128.60 per ounce.

Benchmark copper futures on the London Metal Exchange dropped 1.3% to $13,953.33 a ton, while U.S. copper futures fell 0.5% to $6.58 a pound.

LME copper rose to as high as $14,191.48 per ton in Wednesday’s session, trading close to its all-time high of $14,531.70 per ton set in late January.