FX.co ★ Gold Slips as China Considers US Tariff Halt

Gold prices fell to approximately $3,300 per ounce on Friday, undoing the gains from the previous day, as China deliberates on lifting tariffs on select U.S. imports, subsequently lessening the metal’s appeal as a safe-haven asset. Recent reports indicate that China is prompting companies to pinpoint goods that may qualify for exemption from its hefty 125% tariffs, marking a move towards de-escalation in the ongoing trade tensions. This development comes after President Trump confirmed that trade negotiations with China are ongoing, which contrasts with Chinese claims suggesting otherwise. As a result, gold has surrendered its earlier gains and is poised for a slight weekly loss. Earlier in the week, gold reached a new high of $3,500 due to concerns surrounding the U.S. economy, but retreated after Trump moderated his stance regarding the Federal Reserve's autonomy. So far this year, gold has increased by about 30%, while the gold-to-silver ratio has climbed to its highest level since 1994, excluding the pandemic period, underscoring the notable outperformance of gold.