Gold prices lost more than 1% early Friday and were heading for a weekly fall on signals of a potential de-escalation in the U.S.-China trade war, including news that China was weighing tariff exemptions for some U.S. goods.
Spot gold fell 1.5% to $3,299.69 U.S. an ounce as of 4:30 a.m. EDT. U.S. gold futures shed 1.1% to $3,310.20.
The dollar jumped reversing losses from the prior day while European shares rose after a media report that China was weighing tariff exemptions for some U.S. goods, stoking hopes for a de-escalation in a spiraling trade war between the world’s two largest economies.
A higher dollar makes the bullion more expensive for overseas buyers.
U.S. President Donald 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 war.
Gold, traditionally seen as a hedge against geopolitical and economic uncertainties has gained nearly 26% so far this year. It also touched a record high of $3,500.05 on Tuesday.
