Gold (XAU/USD) is trading steadily around $3,300 per ounce as markets brace for upcoming US-China trade negotiations. The talks could significantly impact global economic sentiment, with investors closely monitoring potential tariff adjustments and supply chain implications. Any escalation in trade tensions may boost safe-haven demand for gold, while a de-escalation could strengthen risk appetite.
Recent economic data, including US jobs reports and inflation figures, have kept Federal Reserve policy expectations in focus. Although rate cut speculation has provided some support for gold, a stronger US dollar has limited upside momentum. Analysts suggest that gold’s near-term direction will depend on the Fed’s stance and geopolitical developments, including the trade discussions.
Market participants are also assessing China’s economic health, as weaker demand from the world’s top gold consumer could pressure prices. However, ongoing central bank purchases and retail investor interest continue to underpin the metal. If trade talks result in renewed tensions, gold may retest recent highs, while a breakthrough could see a pullback toward $3,250.
