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Gold prices edged higher to above $4,650 per troy ounce on Friday as traders speculated about potential policy outcomes from the Trump-Xi summit. The XAU/USD pair found temporary support around $4,660 during the Asian session, though gains were modest amid fading expectations of aggressive U.S. rate cuts. Market participants are closely watching how geopolitical developments and central bank policies will influence safe-haven demand for gold.
The move highlights gold's role as a hedge against geopolitical uncertainty and inflation. With the U.S. Federal Reserve signaling a pause in rate cuts, investors are reassessing the metal's appeal relative to the dollar. Traders should monitor the Fed's upcoming statements and any shifts in U.S.-China trade relations, which could drive volatility in the precious metals market.
For Gulf investors, the current price action suggests a cautious outlook. While short-term gains are possible if the Trump-Xi summit yields positive trade developments, sustained momentum may depend on broader macroeconomic factors. Key levels to watch include $4,650 (psychological support) and $4,700 (resistance). The dollar's performance against the euro and yen will also impact gold's trajectory.
