Spot gold was up 1.8% at $3,999.19 per ounce, having risen nearly 2% earlier in the session. U.S. gold futures for December delivery added 0.3% to $4,011.8 ounce.
U.S. President Donald Trump said on Thursday he would reduce tariffs on China to 47% from 57% in exchange for Beijing resuming U.S. soybean purchases and rare earth exports, and cracking down on illicit fentanyl trade.
“You’ve seen a little bit of weakness (in gold)... but as the details (of the U.S.-China deal) came out and people realized it was a pretty hollow agreement, you’ve seen the markets back off of any optimism that the trade wars are over,” said CPM Group managing partner Jeffrey Christian.
Equity markets fell on concerns the truce may prove fleeting.
Meanwhile, the U.S. Federal Reserve lowered interest rates on Wednesday, in line with market expectations, but signaled it may be the final reduction this year as the ongoing government shutdown threatens the availability of key economic data.
Safe-haven gold becomes more attractive in a low-interest rate environment as it is a non-yielding asset. It also tends to thrive during periods of geopolitical and economic uncertainty.
The Wells Fargo Investment Institute raised its 2026 year-end target for gold to a range of $4,500-$4,700/oz, up from $3,900-$4,100/oz earlier, citing geopolitical and trade policy uncertainty.
“We expect these question marks will continue to support private and official demand and drive higher prices,” analysts said in a note.
Elsewhere, spot silver rose 2.3% to $48.64 per ounce, platinum gained 1.1% to $1,603.36 and palladium climbed 2% to $1,439.43.