31.10.202502:29:56UTC+00Gold Heads for Second Weekly Loss

Gold prices dipped to approximately $4,010 per ounce on Friday, marking a second consecutive week of losses. This decline is attributed to diminishing expectations of rate cuts by the Federal Reserve and the recent US-China trade agreement. The two nations have come to a trade truce, featuring a one-year agreement on rare earths and critical minerals, with President Trump reducing fentanyl tariffs to 10%. In return, Beijing has pledged to limit production and resume purchasing US soybeans. Despite the progress, there remains some uncertainty regarding the deal's longevity. In the meantime, Federal Reserve Chair Jerome Powell indicated that an interest rate cut in December is not guaranteed, which has kept the US dollar hovering near a three-month high, consequently making gold more expensive for international buyers. However, gold is still on track for a monthly gain, having risen about 50% this year, bolstered by robust demand from central banks. According to the World Gold Council, central banks acquired 220 tons of gold in the third quarter, reflecting a 28% increase from the previous quarter, with Kazakhstan being a significant buyer, while Brazil made its first gold purchase in over four years.