Bloomberg and Reuters contributed to this report.
Gold finally hit a speed bump. Prices slid nearly 2% Friday, putting bullion on track to snap a nine-week winning run as traders locked in gains and an apparent easing in US–China tensions took some air out of safe-haven demand ahead of a closely watched US inflation print.
By late morning in London, spot gold was down 1.9% at $4,047.30 an ounce around 1105 GMT, extending its weekly drop to about 4.8% — the biggest since November 2024. December futures fell roughly 2% to $4,061.30. The timing matters: the next clue for rates arrives at 1230 GMT with September CPI, and the market still largely expects the Federal Reserve to cut by 25 basis points next week, a backdrop that usually helps non-yielding metals by lowering their opportunity cost.
Even with this week’s stumble, gold’s year remains blazing. It’s up about 55% in 2025, fueled by geopolitical jitters, hefty central-bank buying and a drumbeat of rate-cut hopes. Spot prices even set a fresh record on Monday at $4,181.21 after vaulting the $4,000 mark earlier this month. That kind of vertical move invited a breather.
“The rally of the last few weeks has been too quick,” said Carlo Alberto De Casa of Swissquote, pointing to profit-taking and a bet that US–China friction might ease. “Investors that have achieved massive gains are taking profit or at least reducing their exposure on gold.”
Politics nudged sentiment too. The White House confirmed President Donald Trump will meet China’s Xi Jinping next week during his Asia trip, a scheduling note that soothed some nerves after weeks of tariff and export-control saber-rattling. A calmer trade tape can blunt the urgency to hide out in bullion, at least for a session.
Still, the longer-term bull case hasn’t vanished.
“Even if short-term corrections emerge, the broader trend remains firmly upward, underpinned by strong fundamentals,” said Russell Shor at Tradu.
The fly in Friday’s ointment was the dollar, which firmed about 0.6% on the week, making gold pricier for buyers using other currencies.
Silver shared in the slump, slipping 2.2% to $47.83 and heading for a 7.2% drop on the week. Platinum fell about 2.6% to $1,581.30, while palladium lost 4.1% to $1,397.50. For now, all eyes swing back to that CPI print at 1230 GMT. A cooler read likely keeps the Fed on the easing path and could put a floor under bullion. A surprise pop in inflation risks extending the pullback. Either way, after nine straight winning weeks, gold just reminded everyone it can go down as well as up.
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