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Gold Tumbles in Volatile Week on Signs Trade Tensions May Ease

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(Bloomberg) -- Gold fell at the end of a volatile week that saw prices notch a record before retreating, with signs some trade tensions may be easing.

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Bullion shed as much as 2.5%, dropping for the third time in four sessions. China is considering the suspension of its 125% tariff on some US imports, people familiar with the matter said. Trump told Time magazine he expects to wrap up trade deals with US partners looking for lower tariffs in three to four weeks. But the president gave mixed signals about the status of talks with China, even as the Asian nation has denied negotiations are taking place.

“Headlines over potential, partial exemptions in retaliatory tariffs further boosted sentiment today and allowed gold to dip below $3,300 levels,” said Yuxuan Tang, a strategist at JPMorgan Private Bank. Still, since 2022, gold’s dips have usually been quickly bought back, she added.

The precious metal is up about 25% this year after the Trump administration’s aggressive trade policy rattled markets, spurring demand for havens. The gains have been supported by inflows into bullion-backed exchange-traded funds, as well as central-bank buying. There have also been signs of strong demand in China, including from retail investors.

Gold for immediate delivery traded 2.3% lower at $3,271.34 an ounce at 11:23 a.m. in New York after setting a fresh peak above $3,500 earlier in the week. The Bloomberg Dollar Spot Index gained 0.2%. Silver, platinum and palladium all fell.

--With assistance from Jack Ryan and Yvonne Yue Li.

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