Gold Rises Ahead of Trump-Xi Talks, Fed Outlook and Mideast Tensions
Gold | 2026-05-12 11:58:48
The LBMA Gold Price PM climbed 2.3% to US$4,741 per ounce, extending its year-to-date gain to 8.6%.
By Paul Ploumis
SEATTLE (Scrap Monster): Global financial markets ended last week on a positive note as investors weighed strong corporate earnings, resilient economic data, and persistent geopolitical tensions. Equity markets broadly advanced, while U.S. Treasury yields declined, oil prices weakened, and the U.S. dollar softened amid easing inflation expectations.
Investor attention remains firmly on the high-stakes meeting between President Donald Trump and President Xi Jinping scheduled for May 13–15, as rising tensions over Iran-related sanctions, trade disputes, and artificial intelligence regulations continue to cloud sentiment. The outcome of the talks could significantly influence global market direction.
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Gold prices strengthened during the week, supported by geopolitical uncertainty and expectations of renewed pressure on the U.S. dollar. The LBMA Gold Price PM climbed 2.3% to US$4,741 per ounce, extending its year-to-date gain to 8.6%.
Analysts noted that strong demand for AI infrastructure has pushed U.S. semiconductor stocks to extreme valuations, increasing concentration risks within the broader equity market. This has boosted gold’s appeal as a defensive hedge.
Meanwhile, hopes of a potential U.S.-Iran truce helped pull oil prices lower, reducing inflation concerns and supporting bullion prices.
POLL
What is the biggest market driver this week?
Frequently Asked Questions
- Why did global markets rise last week?
Strong earnings, stable economic data, and easing inflation expectations boosted investor confidence.
- What supported gold prices?
Geopolitical tensions, a weaker U.S. dollar, and concerns over equity market concentration increased gold’s appeal.
- Why are Trump-Xi talks important for markets?
Discussions on trade, AI rules, and sanctions could impact global economic and market stability.
