Gold prices fell over 2% on Friday, marking its worst weekly performance since November 2024 with total losses exceeding 4%. The decline stems from the dollar’s fourth straight weekly gain and reduced safe-haven demand following a temporary U.S.-China trade agreement.
This drop comes after gold reached an all-time high of $3,500.05 per ounce last month, driven by central bank buying and trade war concerns. Recent signs of slowing U.S. inflation and weaker economic data point to potential Federal Reserve rate cuts, which typically favor gold.
Other precious metals also declined, with silver down nearly 2% and platinum and palladium showing smaller losses.