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Gold prices (XAU/USD) rose to near $4,700 during the Asian session on Thursday as markets adopted a cautious stance ahead of the upcoming U.S.-China summit between President Donald Trump and President Xi Jinping in Beijing. The precious metal's gains reflect heightened safe-haven demand amid geopolitical uncertainties and trade tensions between the world's two largest economies. Analysts note that any signs of progress or setbacks in the Trump-Xi talks could significantly impact risk appetite and gold's appeal as a hedge asset.
For traders, the summit represents a critical event-driven catalyst. A positive outcome could ease trade war fears, potentially weakening gold's safe-haven demand, while renewed tensions might boost the metal's price. The U.S. dollar's performance also remains a key factor, as gold typically inverses with the greenback. With central bank purchases and ETF inflows providing additional support, the $4,700 level could serve as a short-term resistance point.
Looking ahead, investors should closely monitor the summit's outcomes and subsequent trade policy developments. Broader macroeconomic indicators like U.S. inflation data and Federal Reserve policy signals will also shape gold's trajectory. For Gulf investors, the metal's performance may influence portfolio allocations in emerging markets where geopolitical risks remain elevated.
