Gold falls, posts weekly loss of 3%

Gold bars

Gold prices declined on Friday, recording a weekly loss amid easing geopolitical tensions in the Middle East and ongoing efforts between the US and China to de-escalate their trade dispute.

August gold futures fell 1.80%, or $60.40, to $3,287.60 per ounce, extending their weekly loss to 2.9%.

The drop followed President Trump's announcement today of a trade agreement with China, after the two countries reached a framework for resolving their trade conflict about two weeks ago.

Meanwhile, risk asset investors were cautiously optimistic that the ceasefire between Iran and Israel—announced earlier this week by Trump—would continue to hold.

On the other hand, official US data showed that the Federal Reserve’s preferred inflation gauge accelerated more than expected in May, while personal consumption expenditures unexpectedly declined, offering mixed signals about the likely path of interest rates.