Gold slips amid hopes of easing US-China trade tensions
GOLD declined more than 1% on Friday and was headed for a weekly fall as news that China has exempted some U.S. goods from its tariffs raised hopes of a de-escalation in trade tensions.
Spot gold was down 1.5% at $3,296.19 an ounce as of 1136 GMT. It hit a record high earlier this week.
U.S. gold futures shed 1.3% to $3,306.50.
'Gold is facing challenges in sustaining its upward momentum as optimism around a potential U.S.-China trade agreement grows,' said Zain Vawda, analyst at MarketPulse by OANDA.
China has exempted some U.S. imports from its 125% tariffs and is asking firms to identify critical goods they need levy-free, according to businesses notified. China has not yet communicated publicly on any exemptions.
The U.S. dollar jumped, making bullion more expensive for overseas buyers.
'A U.S.-China trade agreement could push gold down toward $3,000/oz or lower, depending on other influencing factors,' Vawda said.
Gold, traditionally seen as a hedge against geopolitical and economic uncertainties has gained more than 25% so far this year. It also touched a record high of $3,500.05 on Tuesday.
Meanwhile, Federal Reserve officials indicated they saw no urgency in revising U.S. monetary policy as they sought more information to determine how Trump's tariffs were affecting the economy.
Non-yielding bullion tends to thrive in a low interest rate environment.
Meanwhile, gold discounts in India jumped this week to the highest level in nearly nine years as high prices deterred buyers, while premiums in China rose to a more than one-year peak.
Spot silver fell 0.8% to $33.31 an ounce, platinum also dropped 0.8% at $962.91 and palladium shed 2.1% to $933.67.
Silver was headed for weekly gains, while both platinum and palladium were seen falling for the week.
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