Spot Gold retreated more than 1% on Friday, as China was considering suspension of tariffs on some US imports, which reduced the safe haven allure of the yellow metal.
Media reports stated that some US imports might be exempted from China’s 125% tariffs, with the government asking businesses to identify goods that could be eligible.
“The partial rollback of tariffs on some imports from China may be perceived as a positive step towards further de-escalation in U.S.-China trade tensions, which exert modest downward pressure on safe-haven assets like gold,” IG market strategist Yeap Jun Rong was quoted as saying by Reuters.
In the meantime, US President Donald Trump assured that trade negotiations with Chinese officials were underway, refuting China’s claims that no talks have taken place.
Spot Gold was last down 1.42% on the day to trade at $3,301.47 per troy ounce.
The commodity registered an all-time high of $3,500.12 per troy ounce on Tuesday. It was set to record its first weekly loss in three weeks.
“Over the longer term, structural tailwind remains intact, with further room for reserve diversification among emerging markets as they gradually align with the reserve composition of advanced economies,” IG’s Rong noted.
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