Gold Traders Watch Trump-Xi Summit as Fed Hike Looms — SkimNews
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- Gold traders are watching the Trump-Xi summit as another Fed rate hike next month puts bullion under selling pressure, with the meeting's outcome on tariffs and tech restrictions seen as vital for price direction.
- Analyst Eng Heng Sng said a positive summit extending the tariff truce would ease risk concerns and leave gold vulnerable to profit-taking, while fresh escalation over Taiwan or Iran would boost safe-haven demand.
- Gold prices retreated on Wednesday amid a stronger dollar and rising bond yields, attempting to stabilize within a range of US$4,273-$4,303 per ounce.
- The Fed's September projection of another hike by year-end is intensifying selling pressure on the metal, with traders split on whether the next move is 25 or 50 basis points.
- Beyond tariffs, the summit covers AI cooperation, technology restrictions, and competing positions on Taiwan — a topic GLY, Bullion and Futures flagged as the most sensitive for both sides.
- Markets are parsing the meeting for indications of the two nations' positions on Taiwan, in the wake of an agreement to extend the US-China trade truce through January 10.
Why it matters: Traders face a binary setup on summit day: a constructive extension of the tariff truce would unwind safe-haven demand and expose prices to profit-taking, while any escalation over Taiwan or reactivation of tariffs would amplify it. With the Fed projecting another hike by year-end and gold holding above US$4,273, bullion's near-term direction hinges on whether the Trump-Xi meeting eases trade frictions or deepens them — and sellers from GLY to Bullion and Futures are explicitly watching Taiwan signals.
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