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Gold price drifts higher to around $4,700 in Thursday’s early Asian session.
Trump arrived in Beijing, where he will meet with Xi Jinping to discuss topics including trade and the Iran war.
US wholesale inflation accelerated at its fastest annual pace in four years.
Gold price (XAU/USD) trades in positive territory near $4,700 during the early Asian session on Thursday. The precious metal edges higher as markets turn cautious ahead of the US President Donald Trump-Chinese President Xi Jinping summit in Beijing. The US April Retail Sales report will also be in the spotlight later on Thursday.
Bloomberg reported late Wednesday that Trump arrived in Beijing for the first state visit to China by a US leader in nine years, as the world’s two largest economies look to stabilize ties with a summit playing out against the backdrop of the Iran war.
The United States (US) and China are considering a framework that would allow each nation to identify some $30 billion in goods on which tariffs could be reduced without threatening national security interests.
Data released by the US Bureau of Labor Statistics on Wednesday showed that the US Producer Price Index (PPI) jumped by 6.0% YoY in April, following the 4.3% seen in March. This figure came in hotter than the expectation of 4.9%. On a monthly basis, the PPI inflation rose to 1.4% in April from 0.7% in March, and was much higher than the anticipated 0.5%.
Wholesale inflation hit its highest since December 2022, driven by surging oil prices linked to tensions in the Middle East. This report has reinforced market expectations that the US Federal Reserve (Fed) will maintain elevated interest rates to combat persistent inflationary pressures, which could weigh on the yellow metal. It’s worth noting that Gold is often used amid geopolitical uncertainty but does not yield interest, making it less attractive when interest rates are high.
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