Gold prices fell in early Asian trading on Friday and are poised for their steepest weekly loss in six months. A stronger US dollar and waning safe-haven demand, driven by improved US-China trade relations, have weighed heavily on the precious metal.
Spot gold slipped 0.1% to $3,235.59 per ounce, extending its losses to over 2% since the start of the week. If the trend holds, it would mark the worst weekly performance for gold since November 2024. In contrast, US gold futures rose 0.4% to $3,239.20 per ounce.
The US dollar index has risen 0.4% this week, continuing its upward momentum for a fourth straight week. A stronger dollar typically reduces gold’s appeal by making it more expensive for buyers using other currencies.
Analysts also pointed to easing global tensions as a reason for the decline. A recent agreement between the United States and China to temporarily roll back certain tariffs has reassured investors and reduced the urgency to hedge with safe-haven assets like gold.
Other precious metals mirrored gold’s volatility: spot silver dipped 0.2% to $32.61 per ounce, palladium declined 0.7% to $961.50, while platinum rose 0.3% to $992.55.
Gold prices had already hit a one-month low earlier this week, as traders awaited key US economic indicators such as the Producer Price Index (PPI) for insights into inflation and the broader economic outlook.
