Gold Price Forecast: XAU/USD posts modest gains above $3,300 as traders await US-China trade talks

• Gold price trades with mild gains around $3,325 in Tuesday’s early Asian session.

• US and China trade officials are scheduled to meet in London on Tuesday. 

• China’s central bank added gold to its reserves in May for the seventh straight month. 

The Gold price ( XAU/USD) posts modest gains to near $3,325 during the early Asian session on Tuesday, bolstered by a weaker US Dollar (USD). Investors await the ongoing US-China trade talks on Tuesday for fresh catalysts.

Trade talks between the United States (US) and China are scheduled to meet for a second day in London. US President Donald Trump said that the talks “should go very well.”  US officials noted that it indicated to remove restrictions on some tech exports in exchange for assurances that China is easing limits on rare earth shipments, which are critical to a wide array of energy, defense and technology products. 

Easing trade tensions could lift the Greenback and weigh on the USD-denominated commodity price. “In the short term, if there is a positive outcome of the meeting, it could be a little negative for gold, but not too much,” said Bart Melek, head of commodity strategies at TD Securities.

On the other hand, the persistent geopolitical risks in the Middle East might boost the safe-haven flows, supporting the yellow metal. Israel’s Foreign Ministry said that the detained crew of the Gaza-bound aid ship that was intercepted by Israel on Monday morning docked in the Israeli port of Ashdod Monday evening. 

Data over the weekend showed that the People's Bank of China (PBoC), China’s central bank, bought Gold for the seventh straight month in May. This, in turn, could contribute to the Gold price. PBoC’s gold reserves rose to 73.83 million fine troy ounces at the end of May from 73.77 million ounces at the end of April.