Gold prices advanced on Friday as investors positioned ahead of high-level trade talks between the United States and China.
The precious metal traded above $3,325 per ounce on expectations of easing geopolitical tensions, robust central bank demand and sustained interest from retail investors in Asia.
Spot gold rose by 0.6 percent to $3,325.54 an ounce as of 9:45 a.m. in London, pushing its weekly gain to more than 2.5 percent.
The Bloomberg Dollar Spot Index declined by 0.2 percent, providing further support to gold and other precious metals. Silver, platinum and palladium also posted marginal gains.
The Trump administration is reportedly considering a significant reduction in tariffs on Chinese imports to levels below 60 percent.
According to individuals familiar with the discussions, which are set to commence on Saturday, U.S. negotiators anticipate reciprocal action from China as both sides seek a breakthrough in long-standing trade disputes.
A key U.S. demand includes the removal of China’s restrictions on rare earth exports.
Market participants have interpreted these developments as a potential de-escalation of the trade tensions that have underpinned gold’s 27 percent rally since the beginning of the year. While any softening of the trade stance may dampen safe-haven demand in the near term, strong structural support for gold remains intact.
Central banks have continued to increase their gold reserves, bolstering physical demand globally. In addition, speculative buying by Chinese retail investors has provided a significant lift to bullion markets, reinforcing the metal’s resilience against broader macro uncertainty.
Despite briefly reaching an all-time high of $3,500 an ounce last month, gold has maintained strong momentum amid shifting economic and geopolitical signals.
Analysts expect the metal to remain buoyant in the near term as investors assess the outcomes of the U.S.-China trade negotiations and monitor global monetary policy trends.
“The combination of policy easing expectations, steady central bank accumulation, and geopolitical recalibration continues to make gold an attractive hedge,” said a commodities analyst at Vanda Research.
The broader outlook for precious metals remains positive as inflation uncertainty, currency pressures, and geopolitical instability sustain interest in hard assets.
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