Gold declined in price on Friday as investors sought riskier assets amid optimism the United States and China may reach a trade deal, although a pause in U.S. interest rate hikes kept bullion on track for a second weekly increase.
Spot gold fell 0.3%to $1,316.95 U.S. per ounce early Friday. Prices rose to $1,326.30 U.S., their highest since April 26, on Thursday and are set to gain 1.1% for the week.
U.S. gold futures were down 0.2% at $1,317.10 U.S. per ounce.
U.S. President Donald Trump said on Thursday he will meet with Chinese President Xi Jinping soon to try to seal a comprehensive trade deal as the top U.S. negotiator reported "substantial progress" in two days of high-level talks.
Investors often sell gold to buy other asset classes when interest rates rise since bullion does not pay interest.
Spot gold rose nearly 3% in January, mostly on hopes that the U.S. Federal Reserve would halt its multi-year rate hiking cycle.
The central bank said Wednesday it would hold interest rates steady and would be patient in lifting borrowing costs further this year as it pointed to rising uncertainty about the economic outlook.
Adding to global worries, factory activity in China, the world’s second-largest economy, shrank by the most in almost three years in January.
Among other precious metals, palladium was steady at $1,342.98 U.S. per ounce, while platinum fell 0.5% to $815.50 U.S.
Silver fell 1%t to $15.91 U.S. per ounce after rising to its highest since July 2018 at $16.19 in previous session.
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