Gold prices saw a significant rebound following reports of selective cooperation between the United States and China, though the precious metal continues to navigate mixed signals from global monetary policy.
Spot gold rose by up to 2.5% after a diplomatic meeting between U.S. President Donald Trump and Chinese President Xi Jinping on Thursday, October 30, 2025. This surge followed a nearly 5% decline in the metal’s price over the four preceding sessions.
The leaders of the world’s two largest economies met, and market participants interpreted the outcome as a temporary de-escalation of tensions. President Trump described the talks as “an incredible meeting” and stated that China would lift certain controls on rare earths and resume purchases of American soybeans.
China’s official Xinhua news agency reported that President Xi expressed willingness to cooperate with the U.S. in sectors including trade, energy, and artificial intelligence. However, reports indicated these measures are aimed at alleviating immediate friction rather than providing a comprehensive resolution to the structural economic competition between the two nations.
Meanwhile, Federal Reserve Chair Jerome Powell downplayed the likelihood of a December interest rate cut. His comments came after an anticipated quarter-point rate reduction the previous Wednesday amid a cooling U.S. labor market. Higher interest rates typically weigh on gold, increasing the opportunity cost of holding the non-yielding asset.
Despite recent volatility, gold had accumulated an approximate 50% gain year-to-date prior to the meeting. This sustained demand is bolstered by consistent purchases from central banks and a growing investor preference for non-monetary assets over sovereign debt.
In New York, late Thursday, gold was trading at approximately $4,024.54 per ounce. The metal had reached a record high above $4,380.00 per ounce the previous week before the recent correction.
Charu Chanana, Chief Investment Strategist at Saxo Markets in Singapore, noted that the meeting appeared to be “an early attempt to reset the U.S.-China narrative” by reviving specific trade channels to rebuild confidence. This suggests the announced measures aim to restore liquidity and reduce immediate friction without addressing deeper economic rivalries.
Sebastian Mullins, Head of Multi-Asset and Fixed Income at Schroders, characterized the recent price correction as natural. He highlighted that potential monetary demand in the current gold bull market is both broad and deep.
The market now balances two opposing forces: geopolitical relief, which can reduce the risk premium associated with safe-haven assets, and monetary policy signals that may elevate gold’s opportunity cost. This dynamic remains a critical watch point for traders and investors, who will continue to monitor evolving trade cooperation and the Federal Reserve’s future monetary adjustments.