Gold set for third straight weekly gain; US-China trade talks in focus

Gold prices rose on Friday and were headed for a third consecutive week of gains, while investors closely monitored further developments in the trade negotiations between the U.S. and China.

FUNDAMENTALS

* Spot gold firmed 0.2% to $3,354.29 an ounce as of 0005 GMT. Bullion hit a record high of $3,500.05 on Tuesday.


* U.S. gold futures gained 0.5% to $3,365.90.

* Gold hit the $3,500-per-ounce mark on Tuesday due to concerns about the U.S. economy, but prices fell below the $3,300 level a day later after U.S. President Donald Trump backed down from threats to fire the Federal Reserve Chair and appeared to soften his stance on China.

* On Thursday, Trump asserted that trade talks with China are underway, pushing back against Chinese claims that no discussions have taken place to ease the ongoing trade spat.

* Meanwhile, U.S. Treasury Secretary Scott Bessent said the excessively high tariffs between the U.S. and China would have to come down before negotiations can proceed but added that Trump would not unilaterally cut tariffs on Chinese imports.

* Fed officials indicated they saw no urgency in revising the monetary policy as they sought more information to determine how the Trump administration's tariffs were affecting the economy.

* Traders currently see around 84 basis points worth of rate cuts by 2025-end.

* Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low interest rate environment.

* Among other metals, spot silver rose 0.2% to $33.65 an ounce and platinum added 0.2% at $973.03. Palladium fell 1% to $944.25.

DATA/EVENTS 0600 UK Retail Sales MM, Ex-Fuel MM, YY Mar 0645 France Business Climate Mfg, Overall Apr 1400 US U Mich Sentiment Final Apr.