Gold slips as US-UK trade deal weakens safe-haven demand  

WASHINGTON: Gold fell on Friday after US President Donald Trump announced a trade deal with the UK, dimming bullion’s safe-haven appeal, while attention shifted to US-China talks this weekend.

Spot gold fell 0.8 per cent to $3,277.67 an ounce, as of 0217 GMT. US gold futures lost 0.7 per cent to $3,282.80.  

Trump and British Prime Minister Keir Starmer announced a “breakthrough deal”. A 10 per cent tariff on goods imported from the UK remains in place, while Britain agreed to lower its tariffs to 1.8 per cent from 5.1 per cent and provide greater access to US goods.  

“I think the progress in trade talks and the US-UK deal is the main reason we’ve got gold off the highs,” Capital.com’s financial market analyst Kyle Rodda said.  

“High level talks over the weekend between the US and China are also driving flows away from gold.”  

Trump said on Thursday he expects there to be substantive negotiations between the United States and China on trade this weekend and predicted that punitive US tariffs on Beijing of 145 per cent would likely come down.  

Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low interest rate environment.  

Several US Federal Reserve officials are due to speak later in the day for further insights into the economy and the Fed’s policy path. This comes after Fed held interest rates steady on Wednesday and warned of rising inflation and unemployment risks.  

Meanwhile, the inflow into physically backed gold exchange-traded funds in April was the largest since March, 2022, with China-listed funds leading the move due to the country’s trade war with the US, data from the World Gold Council showed on Thursday.  

Spot silver fell 0.7 per cent to $32.27 an ounce, platinum rose 0.2 per cent to $977.85 and palladium fell 0.4 per cent to $971.86.