“If we (also) get a deal ironed out between U.S. and China, there’ll be a lot of resistance to the upside and gold should trade back down to, at the very least to $3,200,” said Bob Haberkorn, senior market strategist at RJO Futures.

Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are set to meet with China’s top economic official on Saturday in Switzerland.

Bullion, widely regarded as a hedge against geopolitical uncertainty, had hit multiple record highs since Trump first announced his tariffs.

Elsewhere, China’s central bank has approved foreign exchange purchases by commercial banks to pay for gold imports under recently increased quotas, two people with direct knowledge of the matter said.

“Theoretically, this move should boost gold prices as increased demand from China becomes a factor. However, current market dynamics are dominated by developments surrounding tariffs,” said Zain Vawda, analyst at MarketPulse by OANDA.

Meanwhile, gold reserves in London vaults rose in April as more of the precious metal returned from New York after dislocation. Market players had increased gold deliveries to the U.S. in the December-March period to cover their COMEX positions against the possibility the U.S. would impose tariffs on imports.

Spot silver fell to $32.48, platinum gained 0.8% to $981.60 and palladium added 0.3% to $974.81.