Gold prices saw a 2% drop on Friday, heading towards a weekly decline as the dollar strengthened and easing US-China trade tensions led to a decrease in investor demand for the precious metal. The decline followed a report indicating that China had exempted certain US goods from its tariffs, contributing to lower gold prices.
Spot gold decreased by 1.7% to $3,292.99 an ounce, after falling as much as 2% earlier in the trading session. It’s now down 1.2% for the week, signaling a shift in market sentiment. Meanwhile, US gold futures closed 1.5% lower at $3,298.40 an ounce.
The recent development of China considering tariff exemptions on some US imports, alongside President Donald Trump’s suggestion of de-escalation in trade tensions, has contributed to a more positive outlook on the global trade front. The rise of the US dollar, which is set for its first weekly gain since March, has made gold more expensive for international buyers.
In other precious metals, spot silver slipped 1.6% to $33.03 per ounce, though it is on track for a third consecutive week of gains. Platinum fell 0.5% to $965.53, and palladium experienced a 1.8% dip, closing at $936.89 per ounce.
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