Gold prices rose by 0.8% on Friday, buoyed by dip-buying after earlier losses and cautious optimism around upcoming U.S.-China trade talks. Bullion traded above $3,330 an ounce, up nearly 3% for the week, recovering from mid-week volatility.
Investor attention shifted to trade negotiations after the announcement of a limited U.S.-UK trade agreement. The deal maintains key tariffs but eases restrictions on some goods, including British car exports and U.S. agricultural products. However, it falls short of a comprehensive agreement.
Analysts noted that dip-buying continues to support gold despite a cooling in safe-haven demand. “How the U.S.-China talks unfold could determine whether gold stays above or below the $3,300 mark,” said Tim Waterer of KCM Trade.
President Trump expressed hope for progress in talks with Beijing, hinting that the steep 145% tariffs on Chinese imports might be reduced. A softer U.S. stance on trade could weaken gold’s appeal as a hedge, especially after a year of strong gains driven by global economic uncertainty.
Meanwhile, the Federal Reserve’s latest signals on inflation and unemployment risks are also being closely watched, along with weak gold demand in India and a post-holiday uptick in China.