02:00 PM EDT, 05/08/2025 (MT Newswires) -- (Updates prices.)

Gold traded lower for a second day mid-afternoon on Thursday as planned weekend talks between the United States and China look to calm trade tensions and ease safe-haven demand, while the Federal Reserve held interest rates steady in a day-prior decision, pushing the dollar and yields sharply higher.

Gold for June delivery was last seen down US$84.10 to US$3,307.80 per ounce.

The drop comes as U.S. Treasury Secretary Scott Bessent readies for a weekend meeting with Chinese officials in Switzerland for talks to end the tariff battle between the world's two largest economies that has disrupted global trade flows. Reports the Trump Administration reached a trade deal with the United Kingdom is also buoying hopes the trade disruption caused by U.S. President Donald Trump's imposition of blanket tariffs on U.S. trading partners may be easing.

The Federal Reserve's policy committee on Wednesday left U.S. interest rates unchanged as it warned tariffs threaten higher inflation and slower growth as it waits on further data before moving to cut rates again.

"Yesterday, declines held for gold with Powell reiterating that the Fed is not in a rush to change interest rates, saying "we're in the right place to wait and see how things evolve." It was a unanimous vote to keep the Fed funds rate unchanged, which with dollar strength, confirmed the move lower, but admittedly gold is still at a quite elevated price level," Christopher Louney, a commodities analyst at RBC Capital Markets, wrote.

The dollar rose early, with the ICE dollar index last seen up 1.08 points to 100.69. Treasury yields also rose, with the U.S. two-year note last seen paying 3.911%, up 12.2 basis points, while the yield on the 10-year note was up 11.2 points to 4.385%.