Gold is poised for its third consecutive weekly gain, with attention directed towards the US-China trade discussions. 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 increased by 0.5%, reaching $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 alleviate the ongoing trade spat. Meanwhile, U.S. Treasury Secretary Scott Bessent stated that the excessively high tariffs between the U.S. and China must be reduced before negotiations can advance, but he also noted that Trump would not unilaterally lower tariffs on Chinese imports.

Fed officials expressed that they perceived no immediate need to alter the monetary policy while they awaited further 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 instabilities, flourishes in a low interest rate setting. In the realm of metals, spot silver experienced an increase of 0.2%, reaching $33.65 per ounce, while platinum also saw a gain of 0.2%, now priced at $973.03. Palladium experienced a decline of 1%, settling at $944.25.