#USChinaTradeTalks

U.S. and China set for trade talks in London

Trump hints at imminent Fed chair decision

U.S. and China set for trade talks in London

Three top aides of U.S. President Donald Trump will meet with their Chinese counterparts in London later in the day to discuss the trade disputes between the two economies, a standoff that has kept global markets on edge.

"Short-term traders do not want to take aggressive long positions right now ahead of the outcome of the U.S.-China talks," said Kelvin Wong, a senior market analyst, Asia Pacific at OANDA.

Although tariffs won't disappear, the talks may lower the baseline, Wong said, adding that the cost of doing business in the U.S. will remain elevated, and the widening U.S. budget deficit could exacerbate inflationary pressures.

On the technical front, spot gold is expected to retest support at $3,296, a break below which could open the way towards $3,262, according to Reuters technical analyst Wang Tao.