Gold extended its decline on Friday, retreating further from record highs and heading for its first weekly loss in ten weeks as traders locked in profits following a parabolic run.
Spot gold was trading at $4,055 an ounce by 09:45 GMT. The metal had fallen more than 6% this week, after touching an all-time high of $4,381.29 on Monday, followed by another 1% drop on Wednesday to a two-week low of $4,003.
The pullback marks a pause in gold’s nine-week rally, which had been fuelled by expectations of monetary easing and strong safe-haven demand amid global political tensions. Recent optimism over US–China trade relations, however, has shifted sentiment and reduced defensive flows.
The White House confirmed on Thursday that President Donald Trump will meet Chinese President Xi Jinping in South Korea next week, fuelling hopes of a thaw between the world’s two largest economies.
Traders are also eyeing the delayed release of the US consumer price index (CPI) for September, now due later on Friday. The data, postponed by the ongoing US government shutdown, is seen as pivotal for the Federal Reserve’s meeting next week, with markets pricing in a 25-basis-point rate cut.
A cooler inflation reading could strengthen the case for monetary easing and lend support to gold, while a stronger print might boost the dollar and Treasury yields, adding pressure to bullion prices.
Despite the week’s setback, analysts said gold’s longer-term outlook remains constructive, supported by expectations of lower US rates, continued central bank buying, and lingering geopolitical uncertainty.