XAU/USD: Gold Stays Off Record Highs as Markets Anticipate Good News on US-China Tariff Talks

Trump said he’s kicked off trade negotiations with Xi Jinping after the Chinese leader has rang him up. But Beijing said that didn’t happen. What now?

🥇 Gold Stalls Below Record Highs

• Gold prices XAUUSD remained stuck below all-time highs early Monday, as traders weighed conflicting signals out of Washington and Beijing about the state of US-China trade talks. The market, still sensitive to every word on tariffs, is finding itself caught between hope and skepticism — and that’s keeping gold from making a decisive move.
• Prices of the yellow metal this morning were floating near the flatline around $3,300 per ounce, down about 5.5% from the ultimate peak of $3,500 hit on April 22. What’s next for bullion in this brewing situation?

📞 Trump’s Call Claim Meets Beijing’s Denial

• President Trump told Time magazine that Chinese President Xi Jinping had called him recently, suggesting that negotiations were back on the table after weeks of escalating tariffs. Trump didn’t say when the call happened or what exactly was discussed, but he emphasized, “He’s called. And I don’t think that’s a sign of weakness on his behalf.”
• However, Beijing immediately disputed that narrative. A spokesperson for China’s Ministry of Commerce said, unequivocally, “At present, there are absolutely no negotiations on the economy and trade between China and the US.” Quick catch-up: The US has imposed tariffs on China as high as 145%, while China has hit back with levies up to 125%.

🧩 Uncertainty Keeps Gold in a Tug of War

• For gold, the uncertainty is both a blessing and a curse. On the one hand, lingering doubts about the stability of US-China relations are helping keep demand for safe-haven assets elevated. On the other hand, every hint of a possible thaw — even one wrapped in political spin — is enough to cool the rush into the risk-off instruments.
• Last week's record-breaking rally that led to the all-time session high was shattered by Trump softening his tone on tariffs and Fed Chair Jay Powell. Now, with no clear resolution on trade talks, traders are hesitant to push gold prices into new territory without firmer reasons to bid up.