Gold Stalls, Here's What to Expect!
Spot gold held steady around US$4,700 per troy ounce on Thursday (May 14), with movement likely limited as market participants await the outcome of the meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing. The price, which remains close to the psychological US$4,700 level, indicates the market is adopting a wait-and-see approach amid a combination of geopolitical risks and the direction of US interest rate policy.
Fundamentally, gold remains supported by the clarity surrounding the Iran war, but sentiment could quickly shift if the US-China summit signals a de-escalation or a framework for stabilizing trade relations. Reuters reported that the two sides are considering reciprocal tariff cuts on approximately US$30 billion of non-sensitive goods, which, if positive, could reduce demand for hedge funds.
At the same time, gold's upside is limited by the "higher interest rates for longer" narrative in the US. Surging inflation reinforces expectations of tighter monetary policy, while the 10-year US Treasury yield remains at around 4.47% and the US dollar remains strong at around 98.5 for the DXY index, a combination that generally puts pressure on non-yielding assets like gold.
Technically, today's gold price is moving within an intraday range of around US$4,669–US$4,713. The US$4,700–US$4,713 area is the closest resistance zone, while US$4,670 provides an initial buffer; if pressure persists, the market typically looks to the previous low area around US$4,642. Recent movements also indicate consolidation, with prices slightly below the 5-day closing average of around US$4,709, suggesting that very short-term momentum has not yet regained its dominance.
For today's session, gold's direction will likely be determined by two main triggers: headlines from the Trump–Xi summit (particularly on tariffs and geopolitics) and US data activity such as Retail Sales, which could alter interest rate expectations and move the dollar and yields. The most relevant variables to monitor in the market are changes in the DXY, movements in US yields, and developments in the Middle East that influence global risk perception. (asd)*
Source: Newsmaker.id
