Gold is poised for its third consecutive weekly gain, with attention directed towards the US-China trade discussions. Gold prices experienced a slight increase on Friday, setting the stage for a third consecutive week of gains, as investors closely monitored the unfolding developments in U.S.-China trade negotiations. Spot gold experienced an increase of 0.2%, reaching $3,354.29 per ounce, alongside a rise in U.S. gold futures. The market continues to exhibit sensitivity to trade tensions and U.S. economic data, as traders look forward to potential rate cuts by the end of 2025.
Gold prices experienced an increase on Friday, positioning themselves for a third consecutive week of gains, as investors remained vigilant regarding ongoing developments in the trade negotiations between the U.S. and China. Spot gold increased by 0.2% to $3,354.29 an ounce as of 0005 GMT. Bullion reached an unprecedented peak of $3,500.05 on Tuesday. U.S. Gold Futures experienced an increase of 0.5%, reaching a value of $3,365.90. Gold reached the $3,500-per-ounce threshold on Tuesday amid worries regarding the U.S. economy; however, prices dipped below the $3,300 mark the following day after U.S. President Donald Trump retreated from his threats to dismiss the Federal Reserve Chair and seemed to ease his position on China.
On Thursday, Trump asserted that trade talks with China are underway, countering Chinese claims that no discussions have taken place to ease the ongoing trade spat. In the interim, U.S. Treasury Secretary Scott Bessent indicated that the excessively high tariffs between the U.S. and China must be reduced prior to the advancement of negotiations, while also noting that Trump would not unilaterally lower tariffs on Chinese imports.
Fed officials expressed that they perceived no immediate need to alter the monetary policy, as they aimed to gather additional data to assess the impact of the Trump administration’s tariffs on the economy. Market participants currently anticipate approximately 84 basis points of rate reductions by the end of 2025.
Gold, historically regarded as a safeguard against economic and political uncertainties, flourishes in a low interest rate environment. In the realm of precious metals, spot silver experienced a modest increase of 0.2%, reaching $33.65 per ounce, while platinum similarly saw a rise of 0.2%, now priced at $973.03. Palladium experienced a decline of 1%, settling at $944.25.