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Gold prices fell nearly 2% on Friday, nearing a second consecutive weekly loss, as a US-China trade agreement reduced demand for the metal. Spot gold reached a low of $3,256.23 per ounce before recovering to $3,272.55 by midday, while US gold futures dropped 2% to $3,279.20 in New York.
With Friday’s decline, gold has lost 3% for the week due to improved geopolitical sentiment and market stability following a trade deal between the US and China and a ceasefire agreement in the Middle East. Despite the drop, gold remains up over 25% this year and is approximately $200 away from an all-time high reached in April.
Recent US economic data showing an unexpected decline in consumer spending and moderate inflation has bolstered expectations for a potential 75 basis point reduction in short-term borrowing costs by the Federal Reserve in 2025.
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