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Home Business News Gold advanced on trade stalemate and geopolitical tensions ahead of Fed decision

Gold advanced on trade stalemate and geopolitical tensions ahead of Fed decision

by Erkin Kamran, Traze CEO
6th May 25 8:39 am

Gold prices rose on Monday, as lingering uncertainty over US-China trade negotiations and renewed geopolitical risks boosted demand for safe-haven assets.

Tensions in Eastern Europe remain a source of concern, while new developments in the Middle East could keep investors cautious.

Trade negotiations between the US and China are a key factor in the precious metal’s value.

While President Donald Trump stated over the weekend that China was eager to reach a deal, Beijing reiterated its conditions for resuming talks, highlighting the absence of any imminent progress. The stalemate, combined with a weaker US dollar, helped support the metal.

On the monetary front, investor focus is turning toward this weekโ€™s Federal Reserve policy meeting. Any dovish signals or signs of a slowing economy may support the metal further, while a firmer Fed stance could limit short-term upside. At the same time, economic uncertainty driven by Trumpโ€™s unpredictable tariff policy could continue to drive demand for gold.

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