Gold Traders Watch Trump-Xi Summit, Fed Hike — SkimNews
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- Gold traders are treating this week's Trump-Xi summit as pivotal for price direction, with the metal already facing selling pressure from expectations of another Fed rate hike next month.
- Hua Seng Heng, Thailand's largest gold trader, said a constructive summit outcome would push investors out of gold into riskier assets, while escalation over Taiwan or Iran would drive them back to safe havens.
- Bullion and Futures shares that view, adding that the US-China rivalry is 'structurally innate' — spanning trade, technology and geopolitics — making it difficult for a single meeting to resolve their underlying differences.
- Gold prices stabilized in a US$4,273.40-US$4,303.00 per ounce range on Wednesday, supported by a weaker US dollar and stronger demand.
- The Federal Reserve reinforced a hawkish message with policymakers projecting more rate hikes — extending the underlying pressure on bullion, which has been under intense selling pressure.
- Investors are monitoring the summit for indications of US-China positions on Taiwan — flagged as one of the meeting's most sensitive topics — after an agreement to extend the tariff truce until January 10.
Why it matters: Two forces pin gold in the US$4,273-US$4,303 range: the Fed's hawkish message projecting more rate hikes, and Trump's summit with Xi whose outcome decides whether geopolitical tensions over Iran and Taiwan ease or escalate.
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