Gold prices fell sharply on Friday, ending the volatile trading week lower on signs that global trade tensions may be easing.

Spot gold traded at $3,281.76 an ounce by 12:25 p.m. ET for a 2% intraday decline, its third in four days. The most-traded US gold futures contract fell 1.6% to $3,293.50 an ounce.

Gold’s decline comes amid reports of de-escalating trade tensions between the US and China, as well as earlier indications by US President Donald Trump that several trade deals are in the works.

“Headlines over potential, partial exemptions in retaliatory tariffs further boosted sentiment today and allowed gold to dip below $3,300 levels,” said Yuxuan Tang, a strategist at JPMorgan Private Bank.

Still, since 2022, gold’s dips have usually been quickly bought back, she added.

With the extended decline, bullion is now en route for a 1% weekly drop despite setting a record high above $3,500 three days earlier.

For the year, the yellow metal remains one of the top-performing assets with a 25% gain since the turn of the calendar.

“The apparent detente on tariffs is negatively affecting gold prices … but so far we’ve not seen substantial liquidations,” said TD Securities commodity strategist Daniel Ghali in a Reuters note.

“However, we know that they’ve continued to buy the dip over the last few sessions, so we think gold can resume its upward trajectory,” he added.

Earlier this week, analysts at JPMorgan said they expect gold prices to reach $4,000 an ounce next year. Before reaching that milestone, the bank sees gold averaging $3,675 an ounce in 2025.