Gold Prices Stabilize Ahead of US-China Trade Talks
Gold maintains stability as optimism grows for upcoming negotiations between the US and China.
Gold prices remained stable today, bolstered by increasing optimism ahead of scheduled trade negotiations between the United States and China later today.
The futures market for gold showed a slight decrease, as market participants remained cautious while awaiting the outcomes of the talks.
In the spot market, gold prices edged up by 0.1% to $3,313.54 per ounce by 05:43 GMT.
Conversely, US gold futures slipped by 0.4% to $3,333.80. Three senior officials from the Trump administration are set to meet with Chinese officials in London later today to discuss ongoing trade disputes that have contributed to significant fluctuations in global markets.
Kelvin Wong, a senior market analyst for the Asia-Pacific region, stated that short-term traders are hesitant to make substantial long positions before the results of the US-China negotiations are known.
He noted that although tariffs are unlikely to disappear, the discussions may help alleviate basic levels of tension, while the high cost of doing business in the US persists.
Wong also warned that the widening US budget deficit could exacerbate inflationary pressures.
On a technical level, Wang Tao, a technical analyst, indicated that spot gold may retest the $3,296 level, with a drop below this threshold potentially paving the way for a decline towards $3,262.
US non-farm payroll data has surpassed expectations, with wage growth also exceeding forecasts and the unemployment rate remaining stable.
As a result, investors have reduced their bets on interest rate cuts for this year, now anticipating only one reduction in October, down from an earlier expectation of two.
The upcoming Consumer Price Index (CPI) data, scheduled for release on Wednesday, is expected to provide further insights into inflation trends in the US.
Gold, often regarded as a safe haven asset, typically appreciates during periods of uncertainty and declining interest rates.
In the broader precious metals market, silver experienced a 0.2% increase in the spot market, reaching $36.03 per ounce, while platinum rose by 1.6% to $1,187.80. Palladium, however, saw a minor decline of 0.1%, trading at $1,045.61.
The futures market for gold showed a slight decrease, as market participants remained cautious while awaiting the outcomes of the talks.
In the spot market, gold prices edged up by 0.1% to $3,313.54 per ounce by 05:43 GMT.
Conversely, US gold futures slipped by 0.4% to $3,333.80. Three senior officials from the Trump administration are set to meet with Chinese officials in London later today to discuss ongoing trade disputes that have contributed to significant fluctuations in global markets.
Kelvin Wong, a senior market analyst for the Asia-Pacific region, stated that short-term traders are hesitant to make substantial long positions before the results of the US-China negotiations are known.
He noted that although tariffs are unlikely to disappear, the discussions may help alleviate basic levels of tension, while the high cost of doing business in the US persists.
Wong also warned that the widening US budget deficit could exacerbate inflationary pressures.
On a technical level, Wang Tao, a technical analyst, indicated that spot gold may retest the $3,296 level, with a drop below this threshold potentially paving the way for a decline towards $3,262.
US non-farm payroll data has surpassed expectations, with wage growth also exceeding forecasts and the unemployment rate remaining stable.
As a result, investors have reduced their bets on interest rate cuts for this year, now anticipating only one reduction in October, down from an earlier expectation of two.
The upcoming Consumer Price Index (CPI) data, scheduled for release on Wednesday, is expected to provide further insights into inflation trends in the US.
Gold, often regarded as a safe haven asset, typically appreciates during periods of uncertainty and declining interest rates.
In the broader precious metals market, silver experienced a 0.2% increase in the spot market, reaching $36.03 per ounce, while platinum rose by 1.6% to $1,187.80. Palladium, however, saw a minor decline of 0.1%, trading at $1,045.61.
Translation:
Translated by AI