Gold Prices Steady as Investors Monitor US-China Summit, Middle East Tensions

Gold prices were little changed during Asian trading on Monday, as investors balanced caution ahead of a key U.S.-China summit with ongoing geopolitical tensions in the Middle East that continue to support safe-haven demand.

The precious metal consolidated after a positive week, where it gained on the back of falling U.S. Treasury yields following the Federal Reserve's latest interest rate decision.

Market Snapshot

As of 21:09 ET (01:09 GMT), key precious metal prices were reported as follows:

• Spot gold was steady at $4,379.37 an ounce.
• Gold futures edged slightly lower to $4,417.57 an ounce.
• Spot silver rose 0.7% to $66.7430 an ounce, while spot platinum gained 0.3% to $1,809.65 an ounce.

Gold advanced approximately 0.6% last week. The gains came even after the Federal Reserve delivered hawkish signals, as the clarity provided on its policy path ultimately sent Treasury yields and the U.S. dollar lower, benefiting the non-yielding metal.

Geopolitical Factors in Focus

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Market participants are closely watching an upcoming summit in Washington between U.S. President Donald Trump and Chinese President Xi Jinping. With artificial intelligence and trade tariffs expected to be major topics, the meeting comes at a time of strained relations and a tariff truce set to expire in November.

In the Middle East, tensions remained elevated after Yemen’s Iran-backed Houthi group reportedly launched more strikes on Saudi Arabia over the weekend. However, a New York Times report stated that President Trump had declined to join retaliatory attacks. Separately, comments from Trump to a Fox reporter, suggesting a possible meeting with Iranian President Masoud Pezeshkian, helped spur some risk appetite and capped gains for gold.

Fed Rate Hike Aftermath

The market is still processing last week's decision by the Federal Reserve to raise interest rates by 25 basis points, its first such hike in three years. Fed Chair Kevin Warsh reiterated the central bank's commitment to its 2% inflation target, signaling the potential for further tightening.

Despite the hawkish stance, the rate hike provided the market with a clearer picture of the Fed's intentions for the coming months. This clarity led to a drop in Treasury yields, which reduces the opportunity cost of holding non-yielding assets like gold.