Market News

(Bloomberg) -- Gold rose Friday — after a roller-coaster week in which it jumped almost 6% in the first two sessions before retracing much of those gains — as the market digested the new US-UK trade deal.

Bullion traded above $3,324 an ounce, and was up almost 3% for the week. The pact gives the US better market access and a faster customs process for exports to Britain, while the UK will see limited relief on autos, steel and aluminum tariffs. However, it fell short of the “full and comprehensive” agreement that President Donald Trump had promised.

Trump also said he believed trade talks this weekend with China would result in tangible progress. The president said he would consider lowering the 145% tariff he has imposed on many Chinese goods if the discussions went well. Beijing, meanwhile, reiterated its calls for the US to cancel unilateral duties on China.

A softer stance on trade from the US would erode haven demand, which has helped gold rise by more than a quarter this year and hit a record above $3,500 last month. However, the limited nature of the US-UK deal and a lack of details, mean it’s unlikely to revive confidence in Trump’s economic agenda, or allay fears of sharply slowing global growth.

Spot gold rose 0.6% to $3,324.75 an ounce as of 1 p.m. in Singapore. The Bloomberg Dollar Spot Index dipped 0.1%, and was up 0.4% for the week. Silver and platinum were flat, palladium edged higher.

--With assistance from Yihui Xie.