Gold prices fell more than 1% on Friday, poised to end a nine-week winning streak. Investors taking profits and signals of easing US-China trade tensions weakened demand for the safe-haven asset.
Spot gold traded at $4,063.46 per ounce as of 11:54 GMT, down 4.3% overall, its sharpest weekly loss since November 2024. US December gold futures fell 1.7% to $4,077.10.
Rise Accelerated, Now in Correction Phase
Gold, which has gained 55% since the beginning of the year, has been supported by geopolitical uncertainties, central bank purchases and interest rate cut expectations. Spot prices hit an all-time high of $4,181 at the beginning of the week. Swissquote analyst Carlo Alberto De Casa said, “The rise has been too rapid in recent weeks. Investors are taking profits on the expectation of a softening in US-China relations.” Markets are closely watching the US September Consumer Price Index (CPI) data and the Fed’s expected 25 basis point interest rate cut next week. Low interest rates generally have a supportive effect on gold. “Although there may be short-term corrections, the overall trend for gold remains strongly upward,” said Tradu senior analyst Russell Shor. Meanwhile, the dollar index closed the week up 0.6%, making gold purchases with other currencies more expensive. Silver fell 1.6%, platinum 1.1%, and palladium 3.8%. While the dollar index closed the week up 0.6%, silver fell 1.6%, platinum 1.1%, and palladium 3.8%.
