Gold prices remained relatively stable on Thursday as market participants awaited the outcome of a meeting between U.S. President Donald Trump and Chinese President Xi Jinping, while also absorbing the latest U.S. inflation data, which has been driven by rising energy costs linked to the Iran conflict.
As of 0931 GMT, spot gold had edged up 0.1% to $4,689.79 per ounce, while U.S. gold futures for June delivery dipped 0.2% to $4,696.20.
At the opening of their two-day summit, Xi Jinping informed Trump that trade negotiations were making progress; however, he cautioned that disputes over Taiwan could threaten bilateral relations and potentially lead to conflict.
“Gold is hovering around $4,700 as markets are still digesting U.S. inflation data. It is very clear that we are in a consolidation phase,” stated Carlo Alberto De Casa, an analyst at Swissquote.
Data released on Wednesday revealed that U.S. producer prices experienced their most significant rise in four years for April, signaling accelerating inflation. This followed a report on Tuesday indicating that annual consumer inflation in the U.S. saw its largest jump in three years.
Traders appear to have largely discounted the possibility of U.S. interest rate cuts this year due to the rising energy prices, with current market expectations suggesting a 29% chance of an interest rate hike by December, based on data from CME Group’s FedWatch tool. The U.S. Senate has approved Kevin Warsh as chair of the Federal Reserve, which may face challenges in implementing interest rate cuts as pressures from inflation mount.
Gold is often seen as a hedge against inflation, although rising interest rates can exert downward pressure on the non-yielding asset. In related market developments, HSBC revised its silver price forecast upward to $75 per ounce for 2026, attributing this shift to a weaker U.S. dollar, though the bank cautioned that further price gains may be limited as silver is considered overvalued.
In metals trading, spot silver declined by 1.1% to $87 per ounce, platinum decreased by 0.9% to $2,117.35, and palladium fell 1.3% to $1,480.56.
Published on May 14, 2026.
