Gold rises with US–China talks, MidEast conflict in focus

Synopsis

Gold prices climbed as investors awaited crucial meetings between U.S. President Trump and Chinese President Xi Jinping, while also monitoring the fragile ceasefire negotiations with Iran. Market participants are also anticipating U.S. CPI data to gauge the Federal Reserve's future interest rate decisions.

Gold prices rose on Tuesday as investors awaited a meeting between U.S. President Donald Trump and Chinese President Xi Jinping while watching developments surrounding the conflict in the Middle East.

FUNDAMENTALS

* Spot gold rose 0.5% to $4,757.59 per ounce by 0050 GMT.

* U.S. gold ‌futures for ⁠June delivery ⁠gained 0.8% to $4,768.20.

* U.S. President Donald Trump said on Monday that a ceasefire with Iran was "on life support" after Tehran's response to a U.S. proposal to end the war made clear the two sides were still far apart on a number of issues.

* Markets are also watching Trump's ⁠two-day visit ‌to China this week, where he is set to meet Xi to discuss a wide variety of ⁠topics including the current conflict in the Middle East.

* Oil prices rose in early Asian trade as negotiations to end the war between the United States and Iran appeared fragile, keeping supply concerns alive. [O/R]

* Investors are looking out for the U.S. Consumer Price Index (CPI) data, due later in the day, to assess ‌the Federal Reserve's interest rate path moving forward.

* Freeport-McMoRan said on Monday it still expects Indonesia's Grasberg copper and gold mine ⁠to resume full production by the end of 2027, reiterating a plan outlined last month and pushing back on reports that the restart could drag into 2028.

* Spot silver rose 0.2% to $86.27 per ounce, platinum slid 0.2% to $2,127, and palladium was down 0.2% at $1,506.34.

DATA/EVENTS (GMT)

0600 Germany HCIP Final YY Apr

1230 US CPI, Core CPI MM, SA Apr

1230 US CPI, Core CPI YY, NSA Apr

1230 US CPI Wage Earner Apr

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