Gold ended the week at around USD 4,118 an ounce on Friday, about 3% below the record of USD 4,381 set earlier in the week.
It was gold’s first weekly decline after 10 consecutive weeks of gains and its biggest weekly drop since mid-May.
A stronger dollar weighs on gold
The stronger US dollar made gold more expensive for international buyers and investors and triggered a wave of profit-taking, temporarily halting the yellow metal’s nine-week rally.
Positive outlook for US–China trade relations
The White House confirmed that US President Donald Trump will meet Chinese President Xi Jinping in South Korea next week. The news boosted optimism about easing trade tensions between the world’s two largest economies and naturally reduced demand for safe-haven assets such as gold.
A technical correction after a historic surge
Market analysts describe the recent drop as a technical correction after gold’s remarkable 56% rise in 2025. On Tuesday, gold fell more than 5% — its biggest daily drop in over a decade.
Medium-term outlook still positive
Despite the weekly decline, gold is still up about 50% overall in 2025. Expectations of further Federal Reserve rate cuts remain a key support for prices, and markets see a 97% chance of a 0.25-point cut at the 29 October meeting.
Overall, experts see the drop as a natural breather after gold’s rapid, historic rise and believe the long-term uptrend will hold as long as the Fed’s expansionary monetary policy continues.
