Gold edges higher with US-China talks in focus

Gold prices edged up to around $4,250 per ounce on Monday after a sharp decline on Friday, with investors closely monitoring upcoming talks between US and China.

Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to meet this week in Malaysia to resume talks following last week’s flare-up in trade tensions.

This comes after President Donald Trump expressed optimism that negotiations could lead to an agreement and described his threatened high tariffs on Chinese goods “unsustainable.”

So far this year, bullion has surged more than 60%, driven by economic and geopolitical uncertainty, expectations of further US rate cuts, strong central bank buying, and ETF inflows.

Adding to gold's appeal as a haven, the US government shutdown has stretched into another week with no clear end in sight.

Currently, markets are fully pricing in a 25bps cut at the Federal Reserve's meeting later this month, with another expected in December.