Having slipped to an intraday low of $3,274.38 earlier on Friday, Spot Gold bounced on likely bargain buying ahead of the outcome of the US-China trade negotiations this weekend.
Gold’s extended losses came after US President Donald Trump and British Prime Minister Keir Starmer announced a “breakthrough deal”.
The 10% tariff on UK imports will remain in place, while the UK will lower its tariffs to 1.8% from 5.1%. And, US levies on steel and aluminum sourced from the UK will be lowered to zero.
“Buying gold on dips is still in vogue, which is so far limiting the downside moves despite safe haven demand drying up to a degree on the U.S.-UK trade deal,” KCM Trade Chief Market Analyst Tim Waterer was quoted as saying by Reuters.
“How the U.S.-China trade talks develop could be key in determining which side of $3,300 gold trades at next week.”
Trump said that he expected constructive negotiations between the US and China on trade, while the 145% US tariffs on Beijing would likely be lowered.
Spot Gold was last up 0.70% on the day to trade at $3,329.08 per troy ounce.
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