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Gold prices traded in a narrow range during Asian hours on Wednesday, as investors balanced a modest return in risk appetite against persistent safe haven demand. Speculation over a possible meeting between U.S. President Donald Trump and China’s President Xi Jinping helped buoy market sentiment, but gold remained well-supported amid ongoing geopolitical uncertainties and economic concerns.
Spot gold held steady at $3,353.71 an ounce, while August gold futures were unchanged at $3,377.72 per ounce by 00:51 ET (04:51 GMT).
Trade Hopes Temper Demand but Safe Haven Appeal Persists
Markets saw a slight boost in risk sentiment after the White House confirmed that Trump and Xi are expected to hold discussions later this week. The announcement raised hopes for a possible breakthrough in U.S.-China trade negotiations, which have been stalled for weeks. A temporary agreement in May to ease tariffs had earlier dented gold’s momentum.
However, investors remained cautious. The broader uncertainty over a comprehensive and lasting trade resolution continues to support bullion demand. Gold prices have risen nearly 2% so far this week, reflecting market nerves.
The situation in Eastern Europe also added to haven buying. A series of aggressive Ukrainian strikes against Russian targets—including an underwater explosion at the strategic Crimea bridge—have intensified geopolitical risks. Separately, tensions in the Middle East deepened as reports emerged of a breakdown in U.S.-Iran nuclear discussions, further clouding the global outlook.
Dollar Recovery Weighs on Broader Metals
The U.S. dollar saw modest gains this week, as traders positioned ahead of Friday’s key nonfarm payrolls report. The greenback was also supported by remarks from Federal Reserve officials, who signaled that interest rates are likely to remain unchanged in the near term, providing a degree of policy certainty.
While a stronger dollar typically dampens demand for dollar-denominated commodities, gold managed to hold its ground, reflecting its resilience amid mixed macro signals.
Other precious metals saw modest moves. Platinum futures rose 0.4% to $1,079.40 per ounce, while silver futures held steady at $34.618 per ounce.
Copper Edges Higher on China Optimism
Industrial metals posted slight gains, with copper benefiting from hopes of a more stable economic trajectory for China, the world’s top copper importer. Easing trade friction with the U.S. could provide a lifeline to China’s manufacturing and construction sectors.
London Metal Exchange benchmark copper futures rose 0.2% to $9,643.10 per metric ton, while U.S. copper futures were up 0.2% at $4.8750 per pound.
As markets await further clarity on trade and geopolitical developments, gold is expected to remain responsive to shifts in both risk sentiment and global macroeconomic indicators.
