Gold prices rose slightly on Thursday as investors monitored discussions between U.S. President Donald Trump and Chinese President Xi Jinping, seeking indications of a resolution to the Iran conflict. Spot gold gained 0.4 percent, reaching $4,707.08 per ounce by 0732 GMT, while U.S. gold futures for June delivery also increased by 0.4 percent, settling at $4,713.80.
Benchmark 10-year U.S. Treasury yields decreased, reducing the opportunity cost associated with holding gold. “Gold seems to be consolidating at the moment as everybody is looking at what’s going to happen in the high-level talks between the U.S. and China,” stated Brian Lan, Managing Director at GoldSilver Central. He added that gold appears to have a downward bias, which may present a purchasing opportunity for investors.
During the two-day summit, Xi Jinping informed Trump that trade discussions were progressing but cautioned that disagreements regarding Taiwan could jeopardize relations and potentially lead to conflict. Trump is anticipated to seek China’s assistance in addressing the costly conflict he initiated with Israel in late February; however, analysts remain skeptical about the level of support he will receive.
Further economic data released on Wednesday indicated that U.S. producer prices experienced their largest increase in four years during April, driven by surging costs for goods and services—an indication of rising inflation. The U.S. Senate confirmed Kevin Warsh as chair of the Federal Reserve as the central bank contends with escalating inflation, complicating Trump’s calls for interest-rate cuts.
Current market expectations have largely eliminated the possibility of a Fed rate cut this year, and traders perceive a 28 percent chance of a rate hike by December, according to the CME Group’s FedWatch tool. Though gold is typically viewed as an inflation hedge, rising interest rates generally exert downward pressure on the non-yielding metal.
In India, gold discounts widened to a record over $200 an ounce on Wednesday, driven by a surge in prices following an increase in import duties, which prompted investor selling amid weakened demand, according to bullion dealers.
Additionally, spot silver decreased by 0.7 percent to $87.33 per ounce, platinum fell by 0.5 percent to $2,126.90, and palladium was down by 0.1 percent, trading at $1,498.28.
The article was published on May 14, 2026.
