Gold (GC=F)

Gold prices fell in early European trading on Friday, as investor concerns over tariffs continued to ease, denting the precious metal's appeal as a safe-haven asset.

Gold futures (GC=F) declined 0.4% to $3,213.50 per ounce at the time of writing, while the spot gold price fell nearly 1% to $3,208.59 per ounce.

The precious metal had surged in the wake of "Liberation Day" on 2 April, when US president Donald Trump announced sweeping tariffs. Investors flocked to gold, as it is considered to act as a hedge in times of economic and political uncertainty.

However, gold prices declined this week, on the back of news that the US and China had agreed to slash tariffs on each other's imports by 115% for 90 days, marking a de-escalation in trade tensions.

In a note on Thursday, Capital Economics climate and commodities economist Hamad Hussain said: "After an extraordinary rally in gold prices, the recent pullback naturally raises the question of where gold prices may be headed next. In our view, the rest of this year will prove more challenging for gold prices than the first few months.

"However, the structural factors which have been key drivers of the gold rally will put a floor under prices this year and probably boost gold to new all-time highs next year."

He said that "while gold prices could feasibly fall further in the near term, we are comfortable with our forecast for prices to end this year at $3,300 per ounce – about 4% higher than the current level. Looking further ahead, we expect gold prices to rise to a record high of $3,600 by the end of 2026, which is well above the consensus."

COMEX - Delayed Quote USD

(GC=F)

3,205.30

(-0.66%)

As of May 16 at 4:59:58 PM EDT. Market Open.

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Oil (BZ=F, CL=F)

Oil prices also were steady on Friday morning, amid expectations of a potential nuclear deal between the US and Iran.

Brent crude futures (BZ=F) dipped 0.2% to $64.42 a barrel, while West Texas Intermediate futures (CL=F) were little changed at $61.66 a barrel.

Trump hinted on Thursday that the US was nearing deal with Iran— a move that could increase global crude supply.

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"We'll see what happens," Trump said during a visit to Doha, Qatar. "But we're in very serious negotiations with Iran for long-term peace. And if we do that, it'll be fantastic."

In an interview with NBC News on Wednesday, Ali Shamkhani, a top adviser to Iran's supreme leader, said that Iran was ready to sign a nuclear deal, in exchange for the lifting of all economic sanctions.

Derren Nathan, head of equity research at Hargreaves Lansdown, said: "Optimism over US-China trade relations is outweighing supply concerns that have emerged from several corners."

"US crude inventories have notched up a surprise increase, peace talks with Iran could open the taps further and the International Energy Agency has raised its global supply forecast by 380,000 barrels per day, citing output increases from Saudi Arabia and other OPEC+ members."

NY Mercantile - Delayed Quote USD

(BZ=F)

65.39

+(1.33%)

As of May 16 at 4:59:36 PM EDT. Market Open.

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Pound (GBPUSD=X, GBPEUR=X)

The pound edged higher against the dollar on Friday morning, up 0.2% to trade at $1.3317 at the time of writing, amid positive signals from economic data.

Data released on Thursday showed that the US producer price index (PPI), a key measure of inflation, unexpectedly fell 0.5% month-on-month, compared to expectations of a 0.2% increase.

CCY - Delayed Quote USD

(GBPUSD=X)

1.3284

(0.00%)

At close: May 16 at 10:29:40 PM GMT+1

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Jim Reid, market strategist at Deutsche Bank (DBK.DE), said that this "marked the biggest monthly decline in producer prices since April 2020 and the COVID lockdowns" and also "helped broader inflation expectations to move lower."

"With investors feeling less concerned about inflation, they then dialled up their expectations for Fed rate cuts in response," he said.

Meanwhile, data from the Office for National Statistics (ONS), also released on Thursday, showed better-than-expected UK economic growth.

According to the ONS, the UK's gross domestic product (GDP) grew by 0.7% in the first quarter of 2025, which was ahead of market estimates of 0.6%. This was also a marked improvement of the 0.1% growth recorded over Christmas.

In other currency moves, the pound was little changed against the euro (GBPEUR=X), which was trading at €1.1881 at the time of writing.

More broadly, the FTSE 100 (^FTSE) was up 0.3% at 8,658 points. For more details, check our live coverage here.

CCY - Delayed Quote USD