Spot Gold extended losses on Friday since signs of progress in trade talks dented demand for safe-haven assets.
Yet, downside has been limited by a soft US Dollar.
According to EU diplomats, the EU and the US are moving closer to a possible deal that would impose 15% tariffs on European imports into the US.
Earlier this week, the US announced a trade agreement with Japan, under which the US will impose a 15% reciprocal tariff and Japan will open its market to more US-originated goods.
“Basically we are seeing some profit-taking from short-term bullish speculators due to the fact that we now start to see this trade-deal optimism in the market,” OANDA senior market analyst Kelvin Wong was quoted as saying by Reuters.
“However, the dollar is in a weakening bias and on top of that, we still have the Fed rate cuts pretty much alive at this juncture, which are supporting gold near $3,360 level.”
Offering some support to the yellow metal, the US Dollar Index was set to record its biggest weekly loss in a month, being down 0.97%. A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
Spot Gold was last down 0.34% on the day to trade at $3,357.23 per troy ounce.
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