Gold Prices Slide 2% as Trade Tensions Ease

Gold prices dropped sharply on Friday, retreating from recent highs as signs emerged that global trade tensions may be cooling.

Spot gold was trading at $3,281.76 per ounce by early afternoon in New York, marking a 2% intraday decline-its, the third drop in four sessions. The most active US gold futures contract also slipped 1.6% to $3,293.50 per ounce.

The pullback in gold coincided with reports of easing trade frictions between the United States and China and comments from US President Donald Trump suggesting that multiple trade deals are in progress. According to Yuxuan Tang, a strategist at JPMorgan Private Bank, news of potential partial exemptions from retaliatory tariffs improved market sentiment and pushed gold prices below the $3,300 threshold.

Despite the recent sell-off, Tang noted that since 2022, declines in gold have typically attracted buyers, leading to quick rebounds.

With this latest move, gold is on track for a 1% weekly loss, even after hitting a record high above $3,500 just three days earlier. Nevertheless, gold remains one of the year’s top-performing assets, boasting a 25% gain since January.

TD Securities commodity strategist Daniel Ghali commented that while the easing of tariff tensions is weighing on gold, there hasn’t been a significant wave of selling. He added that investors have consistently bought on recent dips, suggesting gold could soon resume its upward trend.

Looking ahead, JPMorgan analysts project that gold prices could reach $4,000 per ounce next year, with an average of $3,675 per ounce expected in 2025.