US, May 14 : Gold prices moved higher on Thursday as a weaker U.S. dollar increased the appeal of bullion for international investors, while global markets closely monitored upcoming talks between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing. Investors remained cautious amid ongoing geopolitical tensions and persistent inflation concerns linked to the Middle East conflict.
Spot gold gained 0.3 percent to reach $4,699.87 per ounce during early trading hours, while U.S. gold futures for June delivery remained largely unchanged at $4,706.90 per ounce. Analysts said the precious metal continued to benefit from safe-haven buying as uncertainty surrounding global trade and international conflicts kept investors on edge.
Attention is now firmly focused on the high level diplomatic meetings between Trump and Xi, which are expected to influence global economic sentiment in the coming weeks. The discussions are aimed at preserving a fragile trade understanding between the world’s two largest economies while addressing broader geopolitical issues, including the ongoing Iran conflict. Market participants believe any progress in bilateral ties could impact currency movements, commodity prices and investor confidence worldwide.
The U.S. dollar weakened against major currencies, making gold cheaper for overseas buyers and supporting fresh demand in the bullion market. Currency traders said investors were adjusting positions ahead of key economic releases from the United States and Britain later in the day.
Inflation fears also remained a major driver for gold prices. Recent U.S. producer price data showed the sharpest annual increase in four years, reflecting rising costs for goods and services amid continued instability in the Middle East. Economists warned that elevated energy prices and supply disruptions linked to the regional conflict could continue placing upward pressure on inflation globally.
Meanwhile, the U.S. Senate approved Kevin Warsh as the new chair of the Federal Reserve at a crucial time for the American economy. The central bank is facing increasing pressure over how to balance inflation control with expectations for interest-rate cuts supported by President Trump. Financial markets are now closely watching whether the Federal Reserve will maintain tight monetary policy for a longer period.
Boston Federal Reserve President Susan Collins stated in an interview that inflationary effects stemming from the Iran war may eventually ease over time. She suggested that the current spike in prices could be temporary and argued that broader underlying inflation trends still appear to be moderating. Her remarks provided some reassurance to investors worried about long-term price pressures.
In India, one of the world’s largest gold-consuming nations, bullion dealers reported record discounts exceeding $200 per ounce after a recent import duty increase led to weaker demand and increased selling activity. Traders said higher domestic prices have discouraged retail buyers, particularly during a period of already subdued market demand.
Other precious metals showed mixed movement in global markets. Spot silver slipped 0.4 percent to $87.64 per ounce, while platinum advanced 0.7 percent to $2,151.38. Palladium also recorded gains, rising 0.4 percent to $1,506.19 per ounce.
Investors are now awaiting several important economic indicators scheduled for release later Thursday, including UK GDP figures, manufacturing output data, U.S. retail sales numbers and weekly jobless claims. Analysts believe these reports could provide further direction for currency markets, interest-rate expectations and precious metal prices in the near term.