The markets for both WTI Oil and Gold remained cautious and relatively stable on Thursday as investors closely monitored the outcome of the summit between US President Donald Trump and Chinese President Xi Jinping in Beijing [1][2]. WTI Oil traded around $97.30, up 0.34%, after initially dropping to $95.50 in response to the early market reaction to the Trump-Xi talks, before rebounding as the session progressed [1]. Gold (XAU/USD) hovered around $4,700, with trading described as flat and investors hesitant to take strong positions ahead of further developments from the summit [2].
Both articles highlight that the meeting between Trump and Xi was characterized as 'good' and 'extremely positive and constructive' by White House officials, with both leaders agreeing on the importance of keeping the Strait of Hormuz open—a key passage for global oil trade [1][2]. According to Reuters, cited in the Gold article, the closure of the Strait had previously boosted oil prices by more than 40% [2]. The status of Taiwan, considered a controversial topic, was reportedly not discussed during the meeting [2]. Trump also invited Xi to the White House on September 24, and Xi emphasized the need for stable US-China relations [1].
Despite the easing of some geopolitical risk premiums following the summit, underlying supply concerns continue to support oil prices. The International Energy Agency (IEA) forecasted a decline in global oil supply of around 3.9 million barrels per day this year, attributing the shortfall to disruptions from the Iran war in the Middle East—a significant downward revision from previous estimates [1].
On the technical front, Gold is consolidating around $4,700, with the Relative Strength Index (RSI) near 50 and the MACD showing contracting negative momentum, suggesting a neutral to slightly easing downside bias [2]. Key support levels are identified at $4,640 and $4,500, while resistance is seen at $4,750 and $4,880 [2].
Market participants remain cautious, with safe-haven flows supporting the US Dollar amid uncertainty over the Iran ceasefire and recent US inflation data, but overall sentiment is neutral as traders await further clarity from the US-China summit [2].
CONCLUSION
The Trump-Xi summit has temporarily eased some geopolitical tensions, particularly regarding the Strait of Hormuz, leading to a modest rebound in oil prices and a steady gold market. However, persistent supply concerns and ongoing geopolitical risks continue to underpin both commodities. Investors are likely to remain cautious until more concrete outcomes emerge from US-China diplomatic efforts.