Gold set for third straight weekly gain; US-China trade talks in focus

Published Fri, Apr 25, 2025 · 09:33 AM

Gold prices rose on Friday (Apr 25) and were headed for a third consecutive week of gains, while investors closely monitored further developments in the trade negotiations between the US and China.

Spot gold firmed 0.2 per cent to US$3,354.29 an ounce as at 0005 GMT. Bullion hit a record high of US$3,500.05 on Tuesday.

US gold futures gained 0.5 per cent to US$3,365.90.

Gold hit the US$3,500-per-ounce mark on Tuesday due to concerns about the US economy, but prices fell below the US$3,300 level a day later after US President Donald Trump backed down from threats to fire the Federal Reserve chair and appeared to soften his stance on China.

On Thursday, Trump asserted that trade talks with China are underway, pushing back against Chinese claims that no discussions have taken place to ease the ongoing trade spat.

Meanwhile, US Treasury Secretary Scott Bessent said the excessively high tariffs between the US and China would have to come down before negotiations can proceed but added that Trump would not unilaterally cut tariffs on Chinese imports.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Fed officials indicated they saw no urgency in revising the monetary policy as they sought more information to determine how the Trump administration’s tariffs were affecting the economy.

Traders currently see around 84 basis points worth of rate cuts by 2025-end.

Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low interest rate environment.

Among other metals, spot silver rose 0.2 per cent to US$33.65 an ounce and platinum added 0.2 per cent at US$973.03. Palladium fell 1 per cent to US$944.25. REUTERS

Share with us your feedback on BT's products and services