Market Hope for US-China Trade Resolution Pushes Gold Below $3,300

Gold prices fell by over 1.5% on Friday to $3,299.69 an ounce, trending toward a weekly decline as signs emerged of a potential de-escalation in the US-China trade war.

Reports that China might exempt some US goods from tariffs boosted market optimism, strengthening the dollar and lifting European shares.

Analyst Zain Vawda noted that a US-China trade agreement could push gold prices down toward $3,000 per ounce or lower. Despite the recent drop, gold has gained nearly 26% this year and reached a record high of $3,500.05 earlier in the week.

Meanwhile, Federal Reserve officials indicated no urgency to revise monetary policy as they assess the impact of Trump’s tariffs on the economy.