Gold prices dip on optimism for US-China trade progress

Gold prices dipped slightly on Friday, but are still on track for a third straight week of gains. Investors remain upbeat, viewing the precious metal as a hedge against ongoing uncertainties and tensions in US-China trade relations.

American President Donald Trump said on Thursday that negotiations with China are continuing, countering Beijing's claims that Washington has been unresponsive in addressing the conflict. According to the representative from China's Ministry of Commerce, the US must remove all unilateral tariffs if it truly wants to resolve the dispute. 

On the domestic front, there was no immediate need to change monetary policy. Federal Reserve officials emphasized the need for more data to assess the effects of US tariffs on the economy. 

Gold, which does not pay interest, typically sees increased demand during periods of global instability. On Tuesday, the precious metal hit a record high of $3,500 an ounce, as reported by Reuters.