02:00 PM EDT, 10/31/2025 (MT Newswires) -- (Updates prices.)

Gold prices fell midafternoon on Friday as the dollar rose to a three-month high on calming in international trade tensions following a one-year trade agreement between China and the United States.

Gold for December delivery was last seen down US$18.50 to US$3,997.40 per ounce.

The drop follows on the meeting between U.S. President Donald Trump and China's Xi Jinping in South Korea on Thursday and agreed to a deal that includes China relaxing export restrictions on rare-earth minerals and again buying U.S soybeans, while Trump lowered U.S. tariffs on imports from China to 47%, a drop of 10 percentage points.

The deal calmed some worries Trump's trade wars will disrupt global trade and cut growth, but safe-haven buying and strong physical demand for the metal continues as economies adjust to a new trade paradigm. The Guardian reported Canada Prime Minister Mark Carney told the APEC summit in South Korea that: "The old world of steady expansion of rules-based liberalized trade and investment, a world on which so much of our nations' prosperity -- very much Canada's included -- is based, that world is gone".

"Gold trades near US4,000 after recording its first weekly loss in 10 weeks. Initial weakness following the U.S.-China trade deal has eased amid renewed concerns about the long-term relationship between the world's two largest economies, prompting traders to refocus on the drivers behind gold's more than 50% rally this year -- most of which remain firmly in place," Saxo Bank noted.

The dollar rose to a three-month high early, with the ICE dollar index last seen up 0.29 points to 99.82, the highest since July 31. Treasury yields were steady, with the U.S. two-year note last seen paying 3.611%, down 0.5 basis points, while the yield on the 10-year note was down 0.1 points to 4.098%.