Gold prices rebounded on Friday, May 9, 2025, as investors engaged in dip-buying following an earlier decline. Spot gold rose by 0.3% to $3,316.29 per ounce, recovering from a session low of $3,274.38, while U.S. gold futures increased by 0.5% to $3,321.60 .
The initial drop in gold prices was influenced by the announcement of a U.S.-UK trade agreement, which maintained a 10% tariff on UK imports but saw the UK lower its tariffs and enhance access for U.S. goods . This development reduced the demand for gold as a safe-haven asset.
However, attention has now shifted to the upcoming U.S.-China trade talks scheduled for the weekend in Switzerland. President Trump has indicated the possibility of reducing the current 145% tariffs on Chinese imports, which could significantly impact global markets . The outcome of these negotiations is expected to influence gold's price trajectory next week, particularly around the $3,300 mark.
In the broader context, global markets have shown cautious optimism. U.S. stock markets experienced a rally, with the Dow Jones Industrial Average rising over 250 points, boosted by the U.S.-UK trade deal and hopes for progress in U.S.-China negotiations . European and Asian markets also posted gains, reflecting investor sentiment influenced by these developments.
Meanwhile, geopolitical tensions, including conflicts involving Russia-Ukraine, Israel-Hamas, and India-Pakistan, continue to underpin gold's appeal as a safe-haven asset . Additionally, central banks, particularly in China, have increased their gold reserves, contributing to the largest monthly inflow into gold ETFs in three years.
Investors are now closely monitoring the upcoming U.S.-China trade talks and statements from Federal Reserve officials for further insights into the economic outlook and potential impacts on gold prices.
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