Oil, Gold Edges As US President Trump, China's Xi Holds Delegation Level Talks in Beijing
Brent crude increased 0.12% to $105.76, and WTI also rose 0.12% to $101.14. Gold prices climbed due to a weaker dollar, with spot gold at $4,699.87. U.S. inflation pressures grew amid the Middle East conflict, and gold discounts in India hit a record.
- Republic Business
- 3 min read
Washington: Oil prices edged up on Thursday as investors awaited a meeting between U.S. President Donald Trump and Chinese President Xi Jinping later in the day as traders focused on the Iran war.
Brent crude futures were up 13 cents, or 0.12%, to $105.76 a barrel by 0015 GMT, while U.S. West Texas Intermediate futures rose 12 cents, or 0.12%, to $101.14.
Both benchmark oil futures contracts fell on Wednesday as investors worried about possible U.S. interest rate hikes. Brent crude futures fell more than $2 a barrel, while WTI futures fell more than $1.
Trump landed in Beijing on Wednesday evening and is heading into a series of meetings with Xi, aiming to secure economic wins, maintain a fragile trade truce and navigate thorny issues such as the Iran war and arms sales to Taiwan.
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While Trump has said he did not think he would need China's help to end the war with Iran, the president is nonetheless expected to ask Xi for assistance in resolving the costly and unpopular conflict. But analysts said he is unlikely to get the support he wants.
"Failure to make meaningful progress on reopening the strait could leave the US with few options other than renewed military action," IG analyst Tony Sycamore said in a note.
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Iran, meanwhile, appears to have tightened its control over the Strait of Hormuz, cutting deals with Iraq and Pakistan to ship oil and liquefied natural gas from the region.
China is the biggest buyer of Iranian oil despite sanctions pressure from the Trump administration
More than 80% of Iran's shipped oil was destined for China in 2025, as Chinese independent refiners take advantage of discounted U.S.-sanctioned oil.
Gold prices ticked up on Thursday, buoyed by a weaker dollar, as investors focused on talks between U.S. President Donald Trump and Chinese President Xi Jinping.
Spot gold rose 0.3% to $4,699.87 per ounce by 0045 GMT. U.S. gold futures for June delivery were steady at $4,706.90.
Trump heads into a series of meetings with Xi in Beijing, aiming to secure economic wins, maintain a fragile trade truce and navigate thorny issues such as the Iran war.
The dollar eased, making greenback-priced bullion more affordable for holders of other currencies.
U.S. producer prices posted their biggest increase in four years in April, boosted by soaring costs for goods and services, the latest sign of accelerating inflation amid the Middle East conflict.
The U.S. Senate approved Kevin Warsh as chair of the Federal Reserve as the U.S. central bank grapples with intensifying inflation that may make it hard to push through the interest-rate cuts that Trump has demanded.
Boston Fed President Susan Collins told the Wall Street Journal that she expects inflation pressures from the Iran war to eventually subside and that the current shock has masked evidence that underlying inflation is still headed down.
Gold discounts in India widened to a record of more than $200 an ounce on Wednesday, as a surge in prices after an import duty hike triggered investor selling in an already weak demand environment, bullion dealers told Reuters.
Spot silver fell 0.4% to $87.64 per ounce, platinum gained 0.7% to $2,151.38, and palladium was up 0.4% at $1,506.19.