Gold prices rose in Asian trade on Friday, rebounding slightly from two days of sharp losses, as investors weighed the impact of the U.S.-U.K. trade deal and cautiously awaited upcoming China trade talks.

Gold fell in early Asia hours, but reversed course to edge higher, as analysts were sceptical about further de-escalation post the U.K. trade deal.

As of 01:44 ET (05:44 GMT), spot gold rose 0.4% to $3,320.95 per ounce, while gold futures expiring in June gained 0.5% to $3,329.24 an ounce.

The yellow metal was set to jump more than 2% this week, as investors saw increased violatlity, with prices gaining sharply at the start of the week on new U.S. tariff threats on pharma and foreign-made movies.

Trump signs U.K. trade framework deal; signals negotiations with China

President Donald Trump on Thursday signed a framework for a trade deal with the United Kingdom, under which the 10% tariff imposed on goods imported from the U.K. remains in place, while the UK agreed to lower its tariffs to 1.8% from 5.1%. 

Trump also said he expects substantive negotiations between the U.S. and China. Officials from both counties were set to meet over the weekend for trade talks.

Commerce Secretary Howard Lutnick said in media interviews that the U.S. plans dozens of trade deals soon but will likely keep a universal 10% tariff.

Gold, which usually gains in times of uncertainty, fell earlier due to signs of easing trade tensions, but was supported by prevailing caution ahead of U.S.-China talks.

Analysts at ING said they were sceptical that the UK’s deal would herald a much broader easing in trade tensions.

“A de-escalation with China is realistically the only thing that can meaningfully move the dial on the tariff hit,” they added.

The U.S. dollar index was slightly weaker in Asian trading on Friday, making gold cheaper for foreign buyers.

Among other precious metals, Silver Futures were muted at $32.653 an ounce, while platinum futures rose 0.5% to $986.55 an ounce.

Copper prices drop despite resilient China trade data

Copper prices fell slightly on Friday as investors were cautious about the outcome of trade talks with Beijing.

Traders also assessed data, showing a slightly lower than expected Chinese trade balance, but both exports and imports remained resilient despite tariff headwinds.

Benchmark copper futures on the London Metal Exchange fell 0.4% to $9,395.20 a ton, while copper futures expiring in July dropped 1.4% to $4.540 a pound.