Gold price inches higher with spotlight on US-China trade talks

me-metals: Gold prices inched higher on Monday as the market gauges how ongoing US-China trade negotiations will take shape.

According to me-metals cited from mining.com, Spot gold rose 0.4% to $3,324.21 an ounce as of 11:20 a.m. ET, after dropping below the $3,300 level earlier in the session. US gold futures fell 0.1% to $3,343.40 per ounce.

Meanwhile, the US dollar remained subdued, keeping gold relatively cheaper for buyers.

Market participants are keeping a close eye on the US-China trade talks that are taking place in London. Last month, the two sides had agreed to a temporary pause, providing some relief to investors.

“In the short term, if there is a positive outcome of the meeting, it could be a little negative for gold, but not too much,” Bart Melek, head of commodity strategies at TD Securities said in a note.

“I think a weaker economy, likely interest rate cuts and lower momentum on the risk appetite side is getting people to move into gold. And, of course expectations of higher inflation.”

Investors also await US Consumer Price Index (CPI), data due on Friday, to assess the country’s economic health and predict the Federal Reserve’s rate cut trajectory.

Data over the weekend showed that China’s central bank added gold to its reserves for the seventh straight month in May.

Elsewhere, platinum extended its rally to reach its highest since May 2021.

source: mining.com