April 25 (Reuters) — Gold prices dropped 2% on Friday and were set for a weekly loss, pressured by a stronger dollar and signs of easing U.S.-China trade tensions. A report that Beijing had exempted certain U.S. goods from tariffs weighed on bullion.
Spot gold slid 1.7% to $3,292.99 an ounce by 1:39 a.m. EDT (1739 GMT), after earlier falling as much as 2% during the session. For the week, gold is down 1.2%.

U.S. gold futures settled 1.5% lower at $3,298.40.

“The apparent easing of tariff tensions is putting pressure on gold prices, but so far there hasn’t been significant liquidation,” said Daniel Ghali, commodity strategist at TD Securities.
“Given that investors have been buying the dip in recent sessions, we believe gold could soon return to an upward trend,” he added.
China is reportedly considering removing some U.S. imports from its 125% tariffs and has asked businesses to identify products that might qualify for exemptions.
Earlier this week, U.S. President Donald Trump hinted at a possible de-escalation in the ongoing tariff dispute, noting that direct negotiations were already taking place.

The U.S. dollar strengthened and was poised for its first weekly advance since March, making gold more costly for buyers using other currencies.
Despite the recent dip, gold — often viewed as a safe haven during geopolitical and economic turmoil — recently hit an all-time high of $3,500.05 per ounce and has climbed over 25% year-to-date, driven by U.S.-China trade tensions and robust demand from central banks.

“Trade war fears were the primary driver behind the earlier surge in gold purchases,” said Fawad Razaqzada, market analyst at City Index and FOREX.com. “However, it may take some time before real progress is made, meaning those concerns haven’t entirely faded.”
Meanwhile, spot silver dropped 1.6% to $33.03 an ounce but remained on track for its third straight weekly gain.
Platinum edged down 0.5% to $965.53, while palladium slipped 1.8% to $936.89.