Gold prices flat with focus on U.S.-China talks, Iran conflict

Gold prices remained relatively steady on Monday, with Asian markets showing limited movement driven by caution surrounding upcoming U.S.-China talks and ongoing tensions in the Middle East. The metal settled at $4,379.37 per ounce, showing little change from its performance last week. This steadiness can be attributed to lower Treasury yields, following the Federal Reserve's rate hike and Fed Chair Kevin Warsh's reaffirmation of the central bank's commitment to its 2% inflation target.

The dollar also experienced a decline last week, further supporting precious metals. The focus this week is on the highly anticipated summit between U.S. President Donald Trump and Chinese President Xi Jinping, which will be held in Washington. This first top-level state visit by Xi during Trump's second term will discuss various topics, particularly artificial intelligence and trade tariffs, as the two nations' economic relationship remains strained by existing tariffs.

Meanwhile, tensions in the Middle East persist, with Yemen's Iran-backed Houthi group continuing to launch strikes on Saudi Arabia. Despite this, there are reports suggesting that a U.S.-Houthi ceasefire remains in place. However, there are growing threats between Washington and Tehran, following persistent rumors of an imminent U.S. attack on Iran.

Trump hinted at the possibility of meeting Iranian President Masoud Pezeshkian during the United Nations General Assembly, a move that caused a drop in oil prices and increased risk appetite in Asian markets. Other precious metals also showed gains, with spot silver rising by 0.7% to $66.7430 per ounce and spot platinum increasing by 0.3% to $1,809.65 per ounce.