Gold prices experienced a notable increase on Friday, concluding a volatile week. Earlier in the week, the precious metal soared nearly 6%, before retreating and losing much of its gains.
As reported by News.Az, quoting Bloomberg, the latest surge in gold prices came as investors analyzed the potential impact of a newly announced trade agreement between the United States and the United Kingdom.
Gold prices broke through $3,324 per ounce, marking a nearly 3% increase for the week. The new trade deal grants the U.S. better market access and faster customs procedures for exports to the UK. In return, the UK will benefit from limited tariff reductions on automobiles, steel, and aluminum. However, the agreement did not reach the level of a “comprehensive” deal as promised by President Donald Trump.
President Trump also expressed confidence that trade negotiations with China over the weekend would yield concrete progress. He stated that if talks go well, he would consider reducing the 145% tariffs currently imposed on many Chinese goods. Meanwhile, Beijing has once again called for the U.S. to lift its unilateral tariffs on China.
A shift toward a softer U.S. stance on trade could diminish safe-haven demand. Safe-haven demand has been a key factor driving gold prices up by more than 25% this year, with prices recently reaching record highs above $3,500 last month. However, the limited details in the U.S.-UK agreement mean it is unlikely to restore confidence in President Trump’s economic agenda or alleviate concerns about a sharp slowdown in global economic growth.
As of 1 p.m. Singapore time, spot gold had risen 0.6%, reaching $3,324.75 per ounce. The Bloomberg Dollar Spot Index dropped 0.1%, with a 0.4% increase for the week. Silver and platinum prices remained unchanged, while palladium saw a modest rise.
Related Topics:
Gold Price Surges Above $3,400 Amid Increased Safe-Haven Demand
