Market News

(Bloomberg) -- Gold was set for its first back-to-back weekly loss this year, as risk appetite returned to Wall Street on strong tech earnings and traders curbed their bets on US interest-rate cuts this year after factory activity data.

Bullion traded little changed near $3,240 an ounce — putting losses this week at more than 2% — after a report showed manufacturing activity shrank in April at a pace that slightly surprised to the upside. Markets pared wagers on the size of the Federal Reserve’s easing trajectory this year, with the first quarter-point rate reduction fully priced in for July. Both higher rates and yields tend to weigh on non-interest bearing gold.

Elsewhere, the precious metal’s haven appeal faded as earnings largely drove optimism in markets alongside potential trade-talk progress between the US and other nations. Still, Thursday’s financial results from tech behemoths Apple Inc. and Amazon.com Inc. underscored worries about the outlook, with both companies expecting a tougher business climate in coming months amid escalating tariff costs.

Investors continue to weigh the impacts of US President Donald Trump’s fast-evolving tariff agenda, which has roiled global markets. Vice President JD Vance said a trade deal with India will be “among” the first agreements, and added that negotiations were also underway with Japan, South Korea and “folks in Europe.”

Despite this week’s sharp selloff, gold is up about than a quarter this year and hit a record above $3,500 last week before losing some ground amid signs the rally was overheated. The ascent has been driven by investors taking refuge in the haven asset on mounting fears that unconventional policies from the White House could stoke a global slowdown.

Speculative demand in China and central-bank buying has also supported gains. Traders will on Friday also weigh a US jobs report, the last piece of significant data this week.

Spot gold was little changed at $3,242.97 an ounce as of 8:23 a.m. in Singapore, and is down 2.3% this week. The Bloomberg Dollar Spot Index was flat, after a 0.5% gain in the previous session. Platinum was little changed while silver and palladium edged higher.