Gold heads for second weekly loss

Gold prices hovered around $4,020 per ounce on Friday, set for a second straight weekly loss, pressured by fading expectations of Federal Reserve rate cuts and a US-China trade deal.

The two countries reached a trade truce with a one-year deal on rare earths and critical minerals, as President Trump cut fentanyl tariffs to 10% and Beijing agreed to curb production and resume US soybean purchases.

Still, some uncertainty remains over the durability of the deal. Meanwhile, Fed Chair Powell said another rate cut in December is not assured, keeping the dollar near a three-month high and making gold costlier for foreign buyers.

Nevertheless, the metal remained on track for a monthly gain and is up about 50% this year, supported by strong central bank demand.

The World Gold Council reported that central banks bought 220 tons of gold in Q3, up 28% from the previous quarter, led by Kazakhstan, while Brazil made its first purchase in over four years.