"Gold remained within a consolidation range as investors monitored high-level talks between US President Donald Trump and Chinese President Xi Jinping for signals on the geopolitical outlook."
"While discussions between the two leaders appeared constructive on trade, tensions surrounding Taiwan remained."
"US Treasury yields remained near their highest levels in several months after producer price data showed the strongest monthly increase since early 2022. This followed earlier consumer inflation data that also surprised to the upside, strengthening expectations that the Federal Reserve may need to maintain a cautious stance."
"Looking ahead, gold's direction will likely remain tied to developments in geopolitics, energy markets, inflation expectations, and central bank rhetoric. While ongoing central bank purchases continue to provide structural support, elevated yields may continue to limit upside momentum in the near term."
Gold remained within a consolidation range as investors tracked high-level US-China talks for clues about the geopolitical outlook. Trade-related signals appeared constructive, but Taiwan-related tensions persisted. Gold also faced downward pressure from elevated global bond yields and ongoing inflation worries. US Treasury yields stayed near the highest levels seen in months after producer price data showed the strongest monthly increase since early 2022. Earlier consumer inflation data also came in above expectations, reinforcing views that the Federal Reserve may keep a cautious policy stance. Higher rate expectations from other central banks and possible late-next-year Fed hikes could further weigh on bullion. Gold’s near-term direction is likely linked to geopolitics, energy markets, inflation expectations, and central bank messaging, with central bank purchases offering support while yields limit upside.
Read at London Business News | Londonlovesbusiness.com
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