Gold prices recovered from early losses during Friday's Asian trade, weighed down by a stronger United States dollar as renewed optimism around global trade deals lifted investor sentiment and prompted profit-taking ahead of closely-watched U.S.-China negotiations.
By 3:25 pm AEST (5:25 am GMT), spot gold was trading $15.80, or 0.5%, higher at US$3,321.99 per ounce, having earlier tested levels below US$3,275.
The Greenback gained ground against major currencies after U.S. President Donald Trump and U.K. Prime Minister Keir Starmer announced a breakthrough trade agreement.
The deal has sparked speculation that further deals may follow, especially as attention shifts to upcoming talks between Washington and Beijing in Switzerland, where U.S. Treasury Secretary Scott Bessent and Chief Trade Negotiator Jamieson Greer are set to meet with China’s Vice Premier He Lifeng on Saturday.
Some investors may opt to book profits in both gold and Dollar positions ahead of potential volatility from the U.S.-China trade discussions. Others could re-enter the gold market as a safe-haven play, given persistent geopolitical concerns.
Ongoing conflicts, including Israel’s military escalation against Iran-backed Houthi forces in Yemen and rising tensions between India and Pakistan, continue to elevate global risk levels, potentially underpinning demand for gold as a hedge.
