Gold holds near $4,020 as traders weigh U.S.-China trade truce

Gold is holding near $4,021.86 per ounce, staying close to the $4,000 mark as traders look at the new U. S.–China one-year trade truce and try to figure out what it actually ￰0￱ price has moved back and forth this week, but it has not broken down in a major ￰1￱ prices fell as much as 0.9% earlier on Friday before ￰2￱ market is reacting to comments from Xi Jinping, who warned against “breaking supply chains” in his first public remarks after meeting Donald ￰3￱ talks created a pause, but no one is calling it long-term ￰4￱ sides are simply buying time while they continue to pull apart in technology, supply sourcing, and ￰5￱ with the temporary pause, it does not erase the long-term competitive pressure between the two largest ￰6￱ are treating it as a cooling period, not a ￰7￱ calm has not been enough to remove the broader demand for assets that people move to when things look ￰8￱ helps explain why gold is still up this month and still seen as a hedge even while prices have pulled back from their ￰9￱ signals and ETF outflows pressure bullion Gold is down more than 8% from its record high above $4,380 on October 20, marking its second weekly decline.

A big reason is shifting expectations around the Federal ￰10￱ cutting rates by a quarter-point on Wednesday, Jerome Powell said investors should stop assuming another cut will happen in ￰11￱ remarks reduced some of the fuel behind gold’s earlier surge. Gold-backed exchange-traded funds (ETFs) have also seen investors pull ￰12￱ fell for six straight days before showing small inflows again on Thursday, based on data from ￰13￱ flows matter because ETFs helped drive a lot of the run toward $4,400. Now, not only are fewer people buying, but some are outright ￰14￱ Rennie of Westpac said a “combination of a hawkish cut, a truce in the US-China trade war, plus heavy outflows from the gold ETFs is all adding to the corrective mood.” He added that bullion could fall to around $3,750 if the pressure ￰15￱ banks buy more as investors watch global equities Even with the recent drop, gold is still up more than 50% this ￰16￱ World Gold Council reported a strong wave of central bank buying, with purchases rising 28% in the third quarter compared to the previous ￰17￱ this year, central bank buying ￰18￱ it is moving the other way ￰19￱ is happening at the same time that mainstream investors are using gold to limit portfolio ￰20￱ of 11:23 ￰21￱ New York, spot gold was down 0.2% at $4,017.27.

The Bloomberg Dollar Spot Index rose 0.2%. Silver and palladium saw small ￰22￱ ￰23￱ the stock market, the S&P 500 is priced at 23 times forward earnings, compared to a 20-year average of ￰24￱ “Magnificent Seven” tech stocks make up over one-third of that ￰25￱ valuations sit around 31 times forward earnings, which makes some investors nervous about bubble risk. A Bank of America team led by Michael Hartnett said , “AI equity leadership ain’t budging for the time being, and we like gold & China stocks as best boom/bubble hedges.” The same team noted that outflows from global gold funds hit a record $7.5 billion in the latest weekly data from EPFR, after four months of ￰26￱ the other side, Chinese stocks have surged, with the MSCI China Index up 33% this year, helped by optimism around generative AI after DeepSeek’s ￰27￱ the index is now close to ending a five-month winning streak, as investors refocus on U.

S.–China tensions and China’s economic ￰28￱ Bybit now and claim a $50 bonus in minutes