Gold prices extended gains on Tuesday, reaching a one-week high as investors flock to safe havens ahead of U.S. President Trump’s meeting with Chinese President Xi Jinping. Meanwhile, oil climbs continue ahead of key stockpile data.
Gold futures jumped $7.55, or 0.6%, to trade at $1,261.55 per troy ounce. The yellow metal hit a high of $1,263.70 overnight. Spot gold gained $5.90 to trade at $1,259.50.
President Trump will meet with Chinese President Jinping for the first time on Thursday and Friday. Trump said in a tweet last week that the meeting “will be a very difficult one.”
Trump’s comments rattled investors, spoiling risk appetite and sending investors to safe-haven assets. Markets were also jittery following a deadly attack in St. Petersburg, Russia on Monday that left 14 dead and 50 injured.
Traders were also looking ahead to the Fed’s meeting minutes from March, due Wednesday, and Friday’s jobs report. Investors do not expect the Federal Reserve to raise rates at its next meeting. Gold is sensitive to U.S. rates.
In other metals news, silver futures added 16.5 cents to trade at $18.37 per troy ounce. Palladium hit $808.80 an ounce, and platinum gained 0.7% to trade at $965.25.
Meanwhile, oil prices climbed in U.S. trading, erasing earlier losses, as investors await weekly stockpile data.
The American Petroleum Institute will release its weekly inventory report later this afternoon. The Energy Information Administration will release its official report the following day.
Analysts are expecting a draw of 0.5 million barrels.
West Texas Intermediate gained 32 cents to trade at $50.55 per barrel after falling to a low of $49.88 overnight. Brent oil increased by 37 cents to trade at $53.49 per barrel.
Crude was lower in the overnight session as investors remain concerned about the ongoing inventory glut. U.S. drilling activity and an increase in Libyan crude production has exacerbated concerns.
Natural gas futures gained 2.9 cents, trading at $3.157 per million BTUs.