Gold prices drop after volatile week
Gold (GC=F) fell to close out a volatile week, after reaching a record high before retreating, amid signs that some global trade tensions may be starting to ease.
Bullion shed as much as 1.9%, dropping for the third time in four sessions and erasing a weekly gain. China is considering the suspension of its 125% tariff on some US imports, people familiar with the matter said, News.Az reports, citing Bloomberg.
Elsewhere, Treasury Secretary Scott Bessent said the US and South Korea could reach an “agreement of understanding” on trade as soon as next week.
“Headlines over potential, partial exemptions in retaliatory tariffs further boosted sentiment today and allowed gold to dip below $3,300 levels,” said Yuxuan Tang, a strategist at JPMorgan Private Bank (JPM). Still, since 2022, gold’s dips have usually been quickly bought back, she added.
The precious metal remains more than a quarter higher this year after the Trump administration’s aggressive trade policy rattled markets, spurring demand for havens. The gains have been supported by inflows into bullion-backed exchange-traded funds, as well as central-bank buying. There have also been signs of strong demand in China, including from retail investors.
Gold for immediate delivery traded 1.3% lower at $3,306.22 an ounce at 3:09 p.m. in Singapore after setting a fresh peak above $3,500 earlier in the week. The Bloomberg Dollar Spot Index gained. Silver, platinum and palladium all fell.
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