London, [Date Placeholder] — Gold prices advanced on Monday following a steep four-session slump, as investors assessed the outcome of a closely watched meeting between US President Donald Trump and Chinese leader Xi Jinping, alongside remarks from Federal Reserve Chair Jerome Powell.
Spot gold rose as much as 2.1%, trimming part of its nearly 5% decline from the previous week’s losses. The rebound came after Trump described his meeting with Xi as an “amazing” one, saying China had agreed to resume purchases of American soybeans and lift controls on rare earth exports.
According to China’s Xinhua News Agency, Xi expressed willingness to cooperate with the United States in key sectors such as trade, energy, and artificial intelligence, signaling a potential thaw in strained economic relations.
Fed Comments Add to Market Volatility
Meanwhile, Federal Reserve Chair Jerome Powell tempered expectations for further rate cuts this year, saying a December reduction was “unlikely” following Wednesday’s widely expected quarter-point cut.
Despite Powell’s firm tone, the vote reflected growing division within the Fed, marking the third consecutive meeting with dissenting opinions — a rare streak not seen since 2019.
“This looks like an early attempt to reset the US–China narrative by re-engaging selective trade channels to restore confidence,” said Charu Chanana, Chief Investment Strategist at Saxo Markets in Singapore. “Gold is, however, still sniffing out uncertainty — pricing a soft easing bias from the Fed and lingering geopolitical risk.”
Gold’s Volatile Run and Investor Outlook
Gold’s recent slide follows a scorching rally that drove prices to a record above $4,380 an ounce last week. Technical indicators had signaled the surge was overheated, while signs of progress in US–China trade relations dented demand for the metal’s traditional safe-haven appeal.
Still, gold remains one of the best-performing assets of the year, up about 50% in 2025, supported by robust central-bank purchases and investor interest in the so-called “debasement trade” — a move away from sovereign bonds and fiat currencies amid mounting budget deficits.
“The market has experienced a natural correction, but we continue to view this bull market as incomparable with prior bull markets in terms of the breadth and depth of potential monetary demand,” noted Sebastian Mullins, Head of Multi-Asset and Fixed Income at Schroders, in a research note.
Market Snapshot
As of 11:32 a.m. in London,
- Spot gold rose 1% to $3,969.30 an ounce.
- The Bloomberg Dollar Spot Index climbed 0.2%.
- Silver extended its winning streak for a third consecutive day,
- Platinum traded steady, while
- Palladium also advanced modestly