Gold Prices Steady as Risk Appetite Grows; Platinum Hits Four-Year High Ahead of U.S.-China Trade Talks

Gold prices showed little movement on Monday during Asian trading, maintaining strong gains from the previous week. The market’s focus was squarely on high-level U.S.-China trade talks scheduled for later in the day, which fueled optimism for a potential de-escalation in the trade conflict between the two largest economies in the world.

Spot gold held steady at $3,310.61 per ounce, while gold futures for August dropped 0.5% to $3,330.65 per ounce by 01:20 ET (05:20 GMT). While the dollar weakened in Asian trade, giving some leeway to metal prices, traders remained cautious about U.S. assets as they awaited the outcome of the crucial talks.

Platinum emerged as a notable outperformer, surging over 2% to reach a four-year high of $1,194.85 per ounce. The rise was driven by expectations of tighter supplies and increased demand, which helped spark positive sentiment. Platinum, often seen as an alternative investment to gold and silver, has surged recently, especially after reports indicated that demand for the metal was rising while supplies were shrinking. A break above the key $1,100 per ounce level further boosted its price.

The broader precious metals market remained relatively stable. Silver futures inched up by 0.2% to $36.205 per ounce, maintaining a near 14-year high reached last week. Despite some movement, silver’s overall performance showed little deviation from its strong upward trend.

Meanwhile, copper prices saw a slight pause after recent gains. Benchmark copper futures on the London Metal Exchange rose marginally by 0.1% to $9,698.70 per ton, while U.S. copper futures steadied at $4.8508 per pound. Weak economic data from China, the world’s largest importer of copper, raised concerns about potential sluggish demand. Chinese trade data revealed a significant 18% drop in copper imports in May from the record highs reached in April, further reflecting the broader slowdown in the country’s economy.

The decline in copper imports came alongside a broader drop in Chinese imports, exacerbated by high U.S. trade tariffs. Additionally, ongoing disinflation in China continued to dampen investor sentiment, with concerns growing about the impact on copper demand as the country’s economic growth cools. If trade tensions persist, demand for copper could face additional headwinds, posing risks to its price trajectory in the near term.

In conclusion, gold remains relatively stable, supported by economic uncertainty and the weakening dollar, while platinum experiences strong gains driven by supply concerns. Copper faces challenges due to weaker-than-expected Chinese data, which has raised questions about demand prospects for industrial metals. All eyes are on the upcoming U.S.-China trade talks, as a potential resolution could provide further support to global markets and influence the outlook for commodities.