Gold price (XAU/USD) trades in positive territory during the Asian trading hours on Thursday. The precious metal edges higher as traders await the outcome of 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 for which tariffs could be reduced without threatening national security interests.
US wholesale inflation accelerated at its fastest annual pace in four years. The surge in producer prices reinforced market expectations that the Federal Reserve will maintain elevated interest rates to combat persistent inflationary pressures.
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 expectations 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.
XAU/USD daily chart
Technical Analysis:
In the daily chart, XAU/USD trades at $4,690, maintaining a mildly bearish bias as it holds below the 100-day simple moving average (SMA). Price trades just above the Bollinger middle band, suggesting tentative support around the midline of the recent range, while the Relative Strength Index (RSI) at 49.65 points to neutral momentum and a consolidative tone rather than a decisive trend.
On the topside, initial resistance emerges at the 100-day SMA around $4,790, with further upside capped by the upper Bollinger band near $4,838 if buyers extend the rebound. On the downside, immediate support is seen at the Bollinger middle band at approximately $4,680, ahead of a lower support zone near the lower Bollinger band at $4,518, where a deeper pullback could attempt to stabilize.
(The technical analysis of this story was written with the help of an AI tool.)
