Spot gold slipped up to 0.8% after a 2.4% surge in the previous session, which ended a four-day losing streak, News.Az reports, citing Bloomberg.
Chinese leader Xi Jinping, in his first public comments following talks with US President Donald Trump, called for stable supply chains.
The leaders’ agreement temporarily calmed months of tensions, but analysts say the one-year pause may only stabilize ties while both nations work to lessen strategic dependence. The move also highlights China’s growing economic influence since Trump’s first term, a dynamic that continues to bolster demand for safe-haven assets like gold.
Bullion is headed for a second weekly drop and is down around 9% from a record high above $4,380 on Oct. 20. The retreat has most recently been aided by reduced expectations of further Federal Reserve rate cuts. Chair Jerome Powell warned that investors should rein in hopes for a December reduction after a quarter-point cut on Wednesday.
Outflows from gold-backed exchange-traded funds have also removed some of the support that underpinned the scorching rally: Total gold ETF holdings fell for six days through Wednesday, the longest streak of declines since April, according to data compiled by Bloomberg.
Despite its recent pullback, gold has still advanced more than 50% this year, with support from a push by mainstream investors to safeguard their portfolios against risk as well as accelerated central-bank buying, the World Gold Council said in a report on Thursday. Central banks purchased 28% more gold in the third quarter than during the preceding three months, reversing a downward trend seen earlier this year.
Spot gold fell 0.7% to $3,995.63 an ounce as of 12 noon in Singapore after being up as much as 0.5% earlier. The Bloomberg Dollar Spot Index was flat. Silver dipped, while platinum and palladium edged higher.
