FX.co ★ Gold Slips for Third Session

Gold prices fell to approximately $3,290 per ounce on Friday, marking the third consecutive day of declines. This downturn is attributed to growing optimism surrounding US-China trade negotiations, which has diminished the attractiveness of safe-haven investments. Both nations are scheduled for talks over the weekend, fostering hopes for progress in resolving their ongoing trade disputes. Additionally, the announcement of a trade agreement between the US and the UK has further alleviated concerns about global trade tensions. Contributing to the pressure on the non-interest-bearing metal, the Federal Reserve maintained its key interest rate at its current level, as anticipated. However, the Fed issued a warning about the increasing risks associated with both inflation and unemployment, highlighting its cautious approach to potential future policy adjustments. Fed Chair Jerome Powell asserted that the central bank is not contemplating a preemptive rate cut in response to any potential economic impact from tariffs. Despite these recent setbacks, gold remains poised for a weekly gain.