Investors were on edge as they prepared for the talks, and global markets ended the week (May 9) cautiously. In the US, stocks edged lower after an early rally, while the US dollar ended slightly stronger at 100.4 from a tight range.
Gold prices were mixed. They hit a two-week high of $3,448 an ounce as investors sought safe havens amid a weaker dollar and rising global tensions. Gold also dipped below $3,300 in midweek. Later, gold prices rebounded on the back of US-China trade talks.
Crude oil rose more than 4%, while silver rose more than 3% for the week. Industrial metals also rose at the start of the week on hopes of progress in US-China trade talks. The US dollar strengthened and China’s services sector data fell to a seven-month low,
The US-China talks are not expected to bring a major breakthrough, but they could be a small first step towards easing the trade war that has been weighing on the global economy. However, the ongoing conflict between the world’s two largest economies is making investors cautious.
