PRECIOUS-Gold rebounds on dip buying; US-China trade talks in focus
By Anushree Mukherjee
May 9 (Reuters) - Gold firmed on Friday on dip-buying after prices dropped earlier in the session, while markets turned their focus to U.S.-China trade talks due this weekend.
Spot gold XAU= added 0.4% to $3,317.39 an ounce as of 0622 GMT. The metal has gained more than 2% so far this week. U.S. gold futures GCcv1 firmed 0.5% to $3,321.80.
Spot gold fell to $3,274.38 earlier in the day, as a U.S.-UK "breakthrough deal" on trade on Thursday dimmed the safe-haven asset's allure.
U.S. President Donald Trump and British Prime Minister Keir Starmer announced a limited bilateral trade agreement that retains Trump's 10% tariffs on British exports, modestly expands agricultural access for both countries and lowers prohibitive U.S. duties on British car exports.
Britain agreed to lower its tariffs to 1.8% from 5.1% and provide greater access to U.S. goods.
"Buying gold on dips is still in vogue, which is so far limiting the downside moves despite safe-haven demand drying up to a degree on the U.S.-UK trade deal," KCM Trade Chief Market Analyst Tim Waterer said.
"How the U.S.-China trade talks develop could be key in determining which side of $3,300 gold trades at next week."
Meanwhile, Trump said he expects substantive negotiations with China this weekend and signalled that the punitive 145% tariffs on Beijing would likely come down.
Gold, traditionally seen as a hedge against economic and political uncertainties, thrives in a low-interest rate environment.
Several U.S. Federal Reserve officials are scheduled to speak later in the day, providing further insights into the economy and the central bank's policy path.
This comes after the Fed held interest rates steady on Wednesday and warned of rising inflation and unemployment risks.
Meanwhile, Indian gold dealers offered discounts this week amid weak demand, as a softer rupee lifted local prices to near record highs, while buying in China picked up after a holiday. GOL/AS
Spot silver XAG= was steady at $32.50 an ounce, platinum XPT= rose 1% to $985.15 and palladium XPD= gained 0.2% to $977.73.
Spot gold price in USD per oz
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