Gold markets found equilibrium near $3,330 an ounce as the second day of US-China trade talks in London signaled potential breakthroughs. The negotiations revealed possible compromises: America might ease technology export restrictions in exchange for China relaxing limitations on rare earth shipments. This diplomatic progress reduced immediate demand for safe-haven assets.
Year-to-date, gold has gained approximately 27%, driven by global trade tensions that enhanced its appeal as a wealth preservation tool. Although the rally has moderated from April’s record highs, ongoing tariff concerns maintain support for precious metals. Bank of America’s Francisco Blanch forecasts gold reaching $4,000, though not until 2026, citing the need for a significant market shock to catalyze such movement. Other precious metals showed mixed performance, with platinum retreating from four-year highs after a 15% surge, while silver and palladium declined.