Gold was largely steady on Thursday, as investors focused on a meeting between US President Donald Trump and his Chinese counterpart Xi Jinping, while digesting a rise in US inflation driven by the increased energy costs linked to the Iran war.
Spot gold inched up 0.1% at $4,689.79 per ounce, as of 0931 GMT. US gold futures for June delivery fell 0.2% at $4,696.20.
China’s Xi Jinping told Trump that trade talks were making progress at the start of a two-day summit on Thursday but that disagreement over Taiwan could damage relations and even lead to conflict.
“Gold is hovering around $4,700 as markets are still digesting US inflation data. It is very clear that we are in a consolidation phase,” said Swissquote analyst Carlo Alberto De Casa.
Data on Wednesday showed that US producer prices posted their biggest increase in four years in April, the latest sign of accelerating inflation. Data on Tuesday had shown US annual consumer inflation posted its largest gain in three years.
Traders have largely priced out US interest rate cuts this year due to rising energy prices, with markets anticipating a 29% chance of a hike by December, according to CME Group’s FedWatch tool. The US Senate approved Kevin Warsh as chair of the Federal Reserve as the US central bank grapples with inflation that may make it hard to deliver the interest-rate cuts that Trump has demanded.
While gold is considered a hedge against inflation, higher interest rates tend to weigh on the non-yielding metal. Meanwhile, HSBC raised its silver price forecasts to $75 per ounce for 2026, citing the weaker US dollar, although the bank believes further room to the upside is limited as silver remains overvalued.
Spot silver fell 1.1% to $87 per ounce, platinum fell 0.9% to $2,117.35, and palladium was down 1.3% at $1,480.56.
Published on May 14, 2026