Gold prices declined on Friday, hovering near five-week lows, and were headed for their steepest weekly loss since November 2024, as the dollar firmed and easing United States-China trade tensions reduced the metal’s appeal as a safe-haven investment.
As of 3:40 pm AEST (5:40 am GMT), spot gold fell US$23.64, or 0.7%, to US$3,216.82 an ounce. The metal has dropped 3.3% so far this week, marking its worst weekly performance in six months.
Meanwhile, the U.S. dollar index is up 0.4% this week, extending its winning streak to a fourth consecutive week. The stronger greenback has made dollar-denominated gold more expensive for foreign investors.
Gold’s decline followed signs of easing trade tensions earlier in the week, as the United States and China agreed to temporarily lower the tariffs introduced in April, helping calm investor nerves.
Meanwhile, economic data pointed to a cooling U.S. economy. Producer prices unexpectedly declined in April, while retail sales slowed.
Consumer prices also rose less than expected, suggesting that inflation pressures might be easing.
