Gold prices fell in Asian trade on Friday and were headed for steep weekly losses as a trade deescalation between the U.S. and China boosted risk appetite and undermined safe haven demand for gold.

Traders were seen locking in steep profits in gold, as it fell sharply from recent record highs. The yellow metal was also pressured by resilience in the dollar this week, as well as rising U.S. Treasury yields. 

Spot gold fell 0.8% to $3,214.90 an ounce, while gold futures for June fell 0.3% to $3,217.65/oz by 01:27 ET (05:27 GMT). 

Gold set for worst week since Nov 

Spot prices were trading down about 3.2% for the week, their worst drop since early-November 2024, as haven demand for bullion was battered by improving risk appetite. 

Washington and Beijing agreed to temporarily slash trade tariffs on each other earlier this week, marking a deescalation in a bitter trade war between the world’s biggest economies. 

The agreement spurred hopes for further deescalation, as well as more U.S. trade deals with other major economies. This in turn sparked a sharp rally in risk-driven assets.

Still, the risk-on rally was seen cooling by Friday, while gold still remained well above the $3,000/oz level.

Traders were seen holding out for a more permanent Sino-U.S. deal, while a swathe of weak U.S. economic readings also spurred uncertainty over growth. 

Other precious metal prices retreated on Friday, and were also headed for weekly losses. Platinum futures fell 0.5% to $989.90/oz, while silver futures fell 0.3% to $32.593/oz. 

Copper ticks lower with more China cues on tap 

Among industrial metals, copper prices drifted lower on Friday, but were sitting on some gains this week on optimism over top importer China’s prospects. 

Benchmark copper futures on the London Metal Exchange fell 0.2% to $9,567.30 a ton, while U.S. copper futures fell 0.2% to $4.6695 a pound. 

A barrage of Chinese economic cues are due next week, starting with industrial production and retail sales data due on Monday.

The People’s Bank of China is then set to decide on its benchmark loan prime rate on Tuesday, with traders speculating over a potential cut as Beijing moves to shore up economic growth.