Gold Advances as Market Weighs Upcoming US-China Trade Talks

(Bloomberg) -- Gold rose at the end of a volatile week as investors focused on the outcome of upcoming trade talks between the world’s two largest economies.

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Bullion is heading for a weekly gain of about 3%. US President Donald Trump floated an 80% tariff on China ahead of negotiations due to begin Saturday as he urged Beijing to do more to open their markets to US goods.

People familiar with preparations for the talks, which are due to begin in Geneva led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, say the US side has set a target of reducing tariffs below 60% as a first step that they feel China may be prepared to match. Progress in two days of scheduled discussions could see those cuts being implemented as soon as next week, they said.

The trade war unleashed by the new US administration has powered gold’s 27% rally this year, sending bullion to a record $3,500 an ounce last month. While a softer stance on trade from the US would weaken haven demand, gold has also seen support from strong central bank buying and speculative Chinese retail activity.

Spot gold rose 0.9% to $3,336.18 an ounce as of 10:56 a.m. in New York. The Bloomberg Dollar Spot Index dipped 0.3%. Silver, platinum and palladium all advanced.

--With assistance from Yihui Xie and Sybilla Gross.

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