Gold Prices Rebound Amid Cautious Optimism Over U.S.-China Trade Talks

Gold prices edged higher on Friday after two days of steep losses, supported by investor caution ahead of U.S.-China trade talks and mixed signals from the new U.S.-U.K. trade framework. Spot gold rose 0.4% to $3,320.95 per ounce, while June gold futures gained 0.5% to $3,329.24 as of 05:44 GMT. Despite recent volatility, the yellow metal is poised for a weekly gain of over 2%, reflecting lingering uncertainty in global markets.

Earlier in the Asian session, gold slipped on optimism surrounding easing trade tensions. However, doubts remain over the broader impact of the U.K. trade agreement, especially with the U.S. maintaining a 10% tariff on British imports. In response, the U.K. reduced its tariff rate to 1.8% from 5.1%. President Donald Trump confirmed the deal on Thursday and hinted at substantive upcoming negotiations with China, scheduled for the weekend.

Commerce Secretary Howard Lutnick emphasized that more trade deals are expected but reiterated the administration’s intent to uphold the 10% blanket tariff. ING analysts expressed skepticism that the U.K. deal would spark wider trade de-escalation, noting that only progress with China could significantly impact global trade dynamics.

A weaker U.S. dollar also supported gold prices by making the metal more attractive to international buyers. Meanwhile, silver futures held steady at $32.653 an ounce, and platinum rose 0.5% to $986.55.

In base metals, copper prices dipped despite resilient Chinese trade data. London copper futures fell 0.4% to $9,395.20 a ton, while July copper contracts on U.S. exchanges dropped 1.4% to $4.540 a pound, reflecting cautious sentiment ahead of trade talks with Beijing.