Gold falls, posts weekly loss, 3% monthly gain

Gold bars

Gold prices declined on Friday, recording a weekly loss but marking their third consecutive monthly gain in October amid ongoing trade and geopolitical uncertainty.

December gold futures fell 0.48% ($19.4) to $3,996.50 per ounce, deepening their weekly loss to 3.40%.

However, on a monthly basis, gold rose 3.20% in October, supported by heightened trade tensions between the US and China, which later eased this week after the two countries reached a temporary agreement on several outstanding issues.

The easing of trade tensions improved investors’ risk appetite, reducing demand for gold as a safe-haven asset. Still, markets remain cautiously focused on military developments in Eastern Europe, as US mediation efforts to end the Russia–Ukraine conflict continue to stall.

Meanwhile, the Presidents of the Federal Reserve Bank of Kansas City and Dallas expressed reservations about the central bank's decision this week to cut interest rates by 25 basis points, citing the risk of rising inflation given the relative stability in the labor market.