Gold slips in Asia, set for a second weekly loss as Fed caution and easing U.S.–China tensions sap haven demand

Gold fell in Asian trade on Friday, putting the metal on course for a second straight weekly decline, after the Federal Reserve struck a cautious tone on further rate cuts and signs of easing U.S.–China trade tensions tempered safe-haven flows.

• Spot gold dipped 0.4% to $4,008.65/oz by 01:49 ET (05:49 GMT), giving back part of Thursday’s sharp advance.
• U.S. gold futures inched 0.1% higher to $4,019.90/oz.
• Despite a >2% jump in the prior session, bullion is down ~2.6% on the week.

Macro drivers

• The Fed lowered its policy rate by 25 bps to 3.75%–4.00%, but Chair Jerome Powell stressed that a December cut was “far from a foregone conclusion.” Yields and the dollar firmed in response, undermining non-yielding assets like gold.
• Risk appetite improved after President Donald Trump described progress with China as “amazing,” flagging a deal “pretty soon.” The leaders met in South Korea on Thursday, agreeing to cut a 10% tariff on fentanyl-linked imports; China also resumed U.S. soybean purchases and paused new rare-earth export curbs—developments that diluted haven bids.

Balance of risks
Near-term momentum remains fragile, but analysts note potential underpinnings from central-bank buying and persistent global uncertainty.

Metals snapshot

• Silver futures: −0.3% to $48.48/oz
• Platinum futures: +0.4% to $1,617.45/oz
• LME copper (benchmark): −0.4% to $10,866.20/ton
• U.S. copper futures: −0.6% to $5.07/lb

China watch
Fresh data showed Chinese manufacturing contracted for a seventh straight month, reinforcing growth concerns and stoking speculation of additional policy support from Beijing.