Gold prices experienced a second consecutive week of losses, trading around $4,020 per ounce. This decline is influenced by diminished anticipation of Federal Reserve rate cuts and a fragile US-China trade agreement. While a trade truce was established with concessions from both sides, the dollar’s strength, bolstered by comments from the Fed Chair, further pressures gold prices. Despite these short-term headwinds, gold remains on track for a monthly gain and a significant yearly increase, largely supported by robust central bank demand.
- Gold prices hovered around $4,020 per ounce on Friday.
- Gold is set for a second straight weekly loss.
- Fading expectations of Federal Reserve rate cuts are pressuring prices.
- The US and China reached a trade truce involving rare earths, critical minerals, and soybean purchases.
- President Trump cut fentanyl tariffs to 10%.
- Some uncertainty remains over the durability of the trade deal.
- Fed Chair Powell indicated another rate cut in December is not assured.
- A strong dollar makes gold costlier for foreign buyers.
- Gold is on track for a monthly gain.
- Gold is up about 50% this year.
- Strong central bank demand is supporting gold.
- Central banks bought 220 tons of gold in Q3, up 28% from the previous quarter.
- Kazakhstan led central bank gold purchases.
- Brazil made its first gold purchase in over four years.
The asset’s performance is currently being pulled in conflicting directions. While positive trade developments and strong demand from central banks provide underlying support, factors such as a firm dollar and uncertainty surrounding future monetary policy decisions are creating downward pressure. The long-term outlook appears positive, driven by institutional buying, but short-term volatility is expected as markets react to economic news and geopolitical events.