Gold prices fell to around $4,010 per ounce on Friday, heading for a second consecutive weekly loss as optimism over Federal Reserve rate cuts faded and the US-China trade truce tempered safe-haven demand.

Washington and Beijing agreed on a one-year deal covering rare earths and critical minerals, with President Trump reducing fentanyl tariffs to 10%, while China pledged to limit production and resume US soybean purchases. However, uncertainty lingers over the durability of the accord.

Comments from Fed Chair Jerome Powell, who said another rate cut in December is not guaranteed, kept the US dollar near a three-month high, pressuring gold by making it more expensive for overseas buyers.

Despite the weekly decline, gold remains on track for a monthly gain and is up about 50% so far this year, supported by robust central bank demand. According to the World Gold Council, central banks bought 220 tons of gold in Q3, up 28% from the previous quarter, led by Kazakhstan, with Brazil making its first purchase in over four years.