Gold Rebounds as Market Eyes U.S.-China Trade Talks Following UK Framework Deal

Gold prices edged higher in Asian trading on Friday, recovering from two days of sharp declines, as investors remained cautious ahead of scheduled U.S.-China trade talks and assessed the limited impact of a newly signed trade framework between the United States and the United Kingdom.

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 as of 01:44 ET (05:44 GMT). The precious metal was poised for a weekly gain of over 2%, supported by earlier safe-haven flows triggered by new U.S. tariff threats.

Markets Cautious Despite UK Trade Framework

U.S. President Donald Trump on Thursday signed a trade framework agreement with the UK, under which the U.S. will maintain its 10% tariff on British goods, while the UK agreed to reduce its own tariffs to 1.8% from 5.1%. While the deal was hailed by both governments as a breakthrough, analysts expressed skepticism over its broader implications for global trade.

Trump added that substantive negotiations with China were expected soon, with high-level talks scheduled to take place over the weekend. Commerce Secretary Howard Lutnick, meanwhile, signaled that more bilateral trade deals were on the horizon but reaffirmed the administration’s commitment to a universal 10% tariff.

Despite the announcement, analysts at ING noted that the UK deal was unlikely to trigger a meaningful de-escalation in wider trade tensions. This sentiment helped support gold prices, which typically benefit during periods of geopolitical and economic uncertainty.

Dollar Weakness Supports Gold

A modest retreat in the U.S. dollar also helped support bullion. The U.S. Dollar Index dipped slightly in Asian trading, making gold more attractive to foreign buyers and offsetting some of the pressure from easing trade tensions.

Gold had rallied earlier in the week following Trump’s surprise threats to introduce new tariffs on pharmaceutical imports and foreign-made entertainment products, sparking fears of renewed global trade friction.

Mixed Moves in Broader Metals Market

Among other precious metals, silver futures were little changed at $32.653 an ounce, while platinum futures rose 0.5% to $986.55 an ounce.

Copper prices slipped as traders remained cautious about the upcoming U.S.-China negotiations. While China’s latest trade data showed resilience in both exports and imports despite tariff-related pressures, a slightly narrower-than-expected trade surplus prompted some investor caution.

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

Outlook

Gold’s direction heading into next week will likely be shaped by developments in the U.S.-China trade talks and any further clarity from the Trump administration regarding its tariff strategy. While signs of trade progress have momentarily cooled safe-haven demand, investors remain alert to potential setbacks that could reignite demand for bullion.