The yellow metal recorded declines of more than 1% in mid-trading on Friday, June 27, the closing session of the week, trading at its lowest level in three weeks. It is heading for its second consecutive weekly loss of more than 2.5%, affected by declining demand for safe-haven assets and an increase in investor risk appetite following a decline in geopolitical risks in the Middle East two weeks after the war between Iran and Israel. Gold is trading at a decline of about 1.13% at $3,290 per ounce, while silver is trading at $36.01 per ounce, down 1.65%.
In a related development, the US Secretary of Commerce indicated that the United States and China are working on a trade framework that is close to being finalized. Optimism that the two largest trading partners are close to reaching a permanent trade agreement has bolstered risk appetite in the markets and caused further declines in gold. In return, Trump stated that he is close to concluding a major trade agreement with India, which will open the Indian market to American companies.

In less than two hours, markets await inflation figures, represented by the Consumer Spending Index (CSPI), a closely watched indicator by the Federal Reserve. Estimates indicate an increase of 0.1% in May and a 2.6% increase year-on-year.

Platinum is trading at $1,359, down about 4.05%, while palladium is down about 0.89%, trading at $1,121.