Gold prices fell on Friday, capping off what appears to be their worst week in months, as easing U.S.-China trade tensions dented demand for safe-haven assets and spurred a broader appetite for risk.
By 08:45 ET (12:45 GMT), spot gold slipped 0.8% to $3,178.06 per ounce, while June gold futures dropped 1.5% to $3,180.50 per ounce. The yellow metal has pulled back sharply from its recent record highs, with traders locking in profits amid rising U.S. Treasury yields and a firmer dollar.
For the week, spot gold was down more than 3%, marking its steepest weekly decline since early November 2024.
The downturn in gold came as Washington and Beijing reached a temporary agreement to roll back trade tariffs, cooling tensions in a years-long trade dispute. The agreement sparked optimism about further easing of trade barriers and spurred rallies across risk-sensitive assets, eroding the safe-haven appeal of gold.
Despite the drop, gold remains above the key $3,000/oz mark, with traders cautious amid lingering concerns over global growth. A series of weak U.S. economic indicators has added to the uncertainty, tempering risk-on sentiment by Friday.
Broader Precious Metals Also Slide
Other precious metals tracked gold’s retreat:
- Platinum futures fell 1.2% to $983.10/oz
- Silver futures slid 1.9% to $32.073/oz
Copper Slips Ahead of Key China Data
Industrial metals saw mixed performance, with copper prices edging lower ahead of key economic data from China, the world’s top consumer of the red metal.
- London Metal Exchange benchmark copper futures dropped 1% to $9,489.00 per ton
- U.S. copper futures declined 1.9% to $4.5935 per pound
Despite Friday’s weakness, copper posted modest weekly gains on optimism over China’s economic recovery. Market attention now turns to a slew of data releases from China, including industrial production and retail sales figures due Monday, followed by the People’s Bank of China’s loan prime rate decision on Tuesday. Speculation is mounting that Beijing could cut rates to support growth.
Investors are expected to remain cautious heading into next week, weighing geopolitical developments, central bank policy signals, and fresh macroeconomic data to gauge the outlook for commodities.