Gold falls as safe-haven demand wanes

Gold prices fell in early trading on Friday, as safe-haven demand declined amid signs of progress in trade negotiations between the United States and its partners. However, a weaker dollar limited the precious metal’s losses.

By 02:43 GMT, spot gold was down 0.1% at $3,363.91 per ounce, but it remains up about 0.4% since the beginning of the week. U.S. gold futures also fell 0.2% to $3,365.50.

“We are seeing profit-taking by speculators following a wave of optimism in the markets. However, the weaker dollar and expectations of a U.S. interest rate cut continue to support gold around the $3,360 level,” said Kelvin Wong, senior market analyst at OANDA. Two European diplomats reported that the United States and the European Union are close to concluding a trade agreement that could include a 15% tariff on European goods, following Washington’s agreement with Japan.

The S&P 500 and Nasdaq indexes hit new record highs at the close of Thursday’s session, as investors’ risk appetite improved, supported by signs of easing trade tensions.