Gold prices broke through $3,340 an ounce, up nearly 1% this week. U.S. Commerce Secretary Howard Lutnick and Chinese Trade Representative Li Chenggang said the two sides have agreed in principle on a framework to implement the Geneva consensus.
The easing between the world’s two largest economies should have an adverse impact on safe-haven assets such as gold, and the lack of a downward trend in gold prices suggests that investors are waiting for more developments.
Gold prices have surged by more than a quarter this year as U.S. President Donald Trump introduced aggressive tariff policies and triggered turmoil in the geopolitical landscape. Central banks have actively bought gold in an attempt to withdraw funds from U.S. assets.
As of 12:46 p.m. Singapore time, gold prices rose 0.5% to $3,340.83, up 0.9% for the week. The Bloomberg Dollar Spot Index rose 0.1%. Silver prices climbed to a nearly 13-year high, while platinum prices rose to a four-year high. Palladium prices also rose.
Investors are looking forward to Thursday’s U.S. Treasury auction, and weak demand may enhance gold’s safe-haven appeal.
