Gold prices declined on Friday and were on track for their sharpest weekly drop since November, as easing tensions between the U.S. and China boosted investor appetite for risk and reduced demand for safe-haven assets.
By 08:45 ET (12:45 GMT), spot gold was down 0.8% at $3,178.06 per ounce, while June gold futures slid 1.5% to $3,180.50/oz.
Investors appeared to be taking profits after gold’s recent surge to all-time highs. The metal also faced headwinds from a firmer U.S. dollar and rising Treasury yields during the week.
Gold Heads for Biggest Weekly Drop Since November
Spot gold has fallen more than 3% this week — the steepest weekly loss since early November 2024 — as appetite for safe havens declined.
The decline followed a temporary truce in the U.S.-China trade war, with both countries agreeing to cut tariffs earlier this week. The development fueled optimism for broader trade de-escalation and lifted global risk assets.
However, by Friday, the rally in risk assets began to ease, and gold continued to hold above the key $3,000 per ounce threshold.
Many traders remained cautious, awaiting a more definitive and lasting agreement between Washington and Beijing. At the same time, a series of disappointing U.S. economic reports stirred fresh concerns about economic growth.
Other precious metals also dropped on Friday and were set to post weekly losses. Platinum futures declined 1.2% to $983.10/oz, while silver futures dropped 1.9% to $32.073/oz.
Copper Slips Ahead of Key China Data
In industrial metals, copper prices dipped slightly on Friday, though they retained some weekly gains thanks to optimism over China’s economic outlook — the world’s largest copper importer.
Benchmark copper contracts on the London Metal Exchange fell 1% to $9,489 per ton, while U.S. copper futures declined 1.9% to $4.5935 per pound.
Markets are awaiting a series of key Chinese economic indicators next week, beginning with industrial production and retail sales data on Monday.
Additionally, the People’s Bank of China is expected to announce its loan prime rate on Tuesday, with speculation rising that it may cut rates to support economic momentum.
