Gold rises as markets eyes U.S, China negotiations

October 20, 2025 (MLN): Gold prices gained on Monday as growing expectations of additional U.S. interest rate cuts boosted demand for the metal, while investors looked ahead to key inflation data and renewed trade discussions between Washington and Beijing later this week.

Spot gold was up 0.18% at $4,255.62 an ounce as of [10:21 am] PST, according to data reported by Mettis Global.

U.S. gold futures for December delivery advanced 1.3% to $4,266.30 per ounce.

The rebound followed a sharp 1.8% drop on Friday  the steepest since May after U.S. President Donald Trump said his proposed 100% tariff on Chinese goods would be unsustainable.

Trump added that he planned to meet with Chinese President Xi Jinping soon and expressed optimism about the bilateral relationship.

Gold has surged more than 60% so far this year, hitting a record $4,378.69 per ounce last Friday, supported by escalating geopolitical risks, aggressive rate-cut bets, strong central bank purchases, de-dollarization efforts, and continued inflows into exchange-traded funds.

Economists expect Friday’s data to show core inflation remaining steady at 3.1% in September, a figure unlikely to sway markets since the Federal Reserve has not challenged expectations for policy easing.

According to the CME FedWatch Tool, traders are fully pricing in a 25-basis-point rate cut this month and another reduction in December.

In other precious metals, silver rose 0.5% to $52.12 per ounce, platinum slipped 0.8% to $1,596.88 per ounce, while palladium rose 0.2% to $1,476.97 per ounce.

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