Price of gold is heading for its worst week in 6 months
Kyiv • UNN
Gold prices fell 2% due to a temporary trade agreement between the US and China. The strengthening dollar also reduced investor demand for gold.
Gold prices fell by more than 2% on Friday and are heading for their worst week in six months, as a general rise in the dollar and a temporary trade agreement between the US and China reduced demand for this safe metal among investors, UNN writes with reference to Reuters.
Details
Spot gold fell 1.9% to $3,178.06 per ounce as of 11:36 GMT (14:36 Kyiv time). Bullion has lost more than 4% this week and is on track for its worst weekly performance since November 2024.
US gold futures fell 1.4% to $3,180.90.
"We have had a week of optimistic signals in terms of trade negotiations, and we have seen the dollar strengthen, which is putting pressure on gold prices," said Nitesh Shah, commodity strategist at WisdomTree.
Earlier this week, the United States and China agreed to temporarily reduce tough mutual tariffs imposed in April, which lifted sentiment in broader financial markets.
The dollar index was restrained this day, but was heading for its fourth consecutive rise on a weekly basis, making gold less attractive to holders of other currencies.
Gold, used as a safe haven in times of political and financial uncertainty, reached an all-time high of $3,500.05 an ounce last month, boosted by central bank purchases, fears of a customs war and strong investment demand.
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Giving some respite to gold, signs of slowing inflation and weaker-than-expected economic data in the United States this week have strengthened bets on further rate cuts by the Federal Reserve this year.
Non-profit gold usually thrives in low interest rate environments.
"On the positive side, the fall in gold prices continues to attract buyers, which shows that the precious metal remains a preferred asset as the outlook for global growth and inflation still looks quite bleak," said Tim Waterer, chief market analyst at KCM Trade.
Elsewhere, spot silver fell 1.8% to $32.08 an ounce, platinum fell 0.5% to $985.1, and palladium lost 1% to $958.24.
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