TLDR
- Spot gold rose 0.3% to around $4,700 as the Trump-Xi two-day summit got underway
- Xi said trade talks showed “positive progress”; Trump called relations “better than ever before”
- U.S. producer prices rose at their fastest pace since 2022, limiting gold’s gains
- India raised gold and silver import duties from 6% to 15%, threatening physical demand
- Kevin Warsh confirmed as new Federal Reserve chair as rate cut hopes remain dim
Gold prices edged up slightly on Thursday as markets focused on a high-profile summit between U.S. President Donald Trump and Chinese President Xi Jinping, while rising inflation data kept a lid on bigger gains.
Spot gold rose 0.3% to $4,700.25 an ounce in early trading. U.S. gold futures slipped 0.2% to $4,697.97. The modest rise came after two sessions of losses.
The two leaders met in China for a two-day summit that drew close attention from commodity markets. Xi told state media that trade negotiations were making “positive progress.” Trump called Xi “a great leader” and said U.S.-China relations would be “better than ever before.”
“We should be partners, not rivals," says Chinese President Xi Jinping to US President Donald Trump at a summit in Beijing.
In his opening remarks, Trump touted his “fantastic relationship” with Xi, and said US business leaders were in the city to "pay respects" to Xi and China… pic.twitter.com/ui1DmGfXfK
— Bloomberg (@business) May 14, 2026
Markets were also watching for any signals around the ongoing Iran war and its impact on global oil supply. Iran and the U.S. have both blockaded the Strait of Hormuz, a key waterway that carries roughly one-fifth of the world’s oil. That disruption has pushed oil prices well above $100 a barrel.
Some analysts suggested Trump may try to get China, a major buyer of Iranian oil, to help broker a peace deal. It remains unclear whether Beijing would take on that role.
Inflation Data Limits Gold’s Upside
Higher oil prices have pushed inflation up across major economies. U.S. producer prices rose in April at their fastest rate since 2022. Consumer prices also came in above expectations, driven by higher energy costs tied to the Iran conflict.
The data reinforced expectations that the Federal Reserve will keep interest rates elevated for longer. That is a headwind for gold, which pays no yield and tends to underperform when rates stay high.
The U.S. Dollar Index held near a two-week high following the inflation reports. A stronger dollar makes gold more expensive for buyers using other currencies, which can weigh on demand.
The U.S. Senate also confirmed Kevin Warsh as the new Federal Reserve chair on Wednesday, replacing Jerome Powell. Warsh takes over at a time when the Fed faces pressure from both inflation concerns and calls from Trump for rate cuts.
India Raises Gold Import Duties
India announced a rise in import duties on gold and silver, moving from 6% to 15%. The move is aimed at reducing the country’s overseas purchases and supporting its foreign exchange reserves.
India is one of the world’s largest gold-consuming nations, meeting most of its demand through imports. Gold and silver together make up nearly 11% of the country’s total imports.
Analysts at ING Group said the tariff increase is likely to reduce physical gold demand in India in the near term, putting pressure on local buying and import flows.
Silver fell 0.6% to $87.01 per ounce. Platinum dropped 0.4% to $2,128.60. Copper futures on the London Metal Exchange fell 1.3% to $13,953.33 per ton, pulling back after hitting a high of $14,191.48 per ton on Wednesday. Copper’s all-time high stands at $14,531.70 per ton, reached in late January.
ING analysts noted that copper inventories outside the U.S. remain low, leaving prices sensitive to any new demand increases.
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