Gold Climbs as Markets Await US-China Trade Talks

Gold prices ticked higher on Friday, rounding off a volatile week with solid gains as investors turned their attention to the upcoming trade negotiations between the United States and China. The precious metal was trading around $3,325 an ounce, up more than 2.5% for the week.

Investor sentiment was influenced by reports that the Trump administration may be preparing to reduce tariffs on Chinese imports to below 60%.

According to sources familiar with the talks set to begin Saturday in Geneva, Washington is hopeful that Beijing might mirror the move. The U.S. is also pushing for the removal of China’s export restrictions on rare earth elements, which are critical to many high-tech and defense-related industries.

These talks could mark a pivotal moment in the trade war that has reshaped global markets since the Trump administration first introduced sweeping tariffs. While a resolution may reduce the demand for gold as a safe-haven asset, uncertainty remains, keeping bullish momentum intact for now.

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Despite potential easing of trade tensions, gold remains well-supported. The yellow metal has already rallied 27% this year, briefly hitting a record high of $3,500 an ounce last month.

Much of this surge has been fueled by heavy central bank purchases, particularly from emerging markets, and strong speculative buying from Chinese retail investors seeking protection against economic volatility.

At 9:45 a.m. in London, spot gold rose 0.6% to $3,325.54 an ounce. The Bloomberg Dollar Spot Index dipped 0.2%, though it remained up 0.3% for the week. A weaker dollar often boosts demand for gold, making it cheaper for international buyers.

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Gold wasn’t the only precious metal on the rise. Silver, platinum, and palladium also posted modest gains, tracking the upward momentum in bullion and benefiting from growing interest in alternative safe-haven assets.

As traders brace for the weekend’s trade talks, gold’s outlook remains highly sensitive to geopolitical developments. A clear sign of de-escalation between the U.S. and China could temper some of gold’s recent gains. However, continued global uncertainties, including central bank policy and inflationary pressures, are likely to keep the metal firmly on investors’ radars.