The international gold price reversed its downward trend.

Gold reversed its earlier downward trend amid the Federal Reserve's concerns over inflation and the labor market. During Friday's (May 9) European session, spot gold was trading at 3 , 322.49 perounce , 𝑢 𝑝 0.52 3,322.49perounce,up0.523,304.45 perounce on the day, hitting an intraday high of 3 , 329.91 andalowof 3,329.91andalowof3,274.75 perounce.

When Donald Trump clasped Keir Starmer's hand to announce the U.S.-UK trade deal, traders in the City of London welcomed the news with rising stock prices. Yet beneath this surface harmony lurks a perilous signal: America is using this agreement to proclaim to the world that 10% tariffs will become the new baseline of the era, while the once-dominant ideal of globalization—"zero tariffs"—has met its definitive demise.

Gold prices have rebounded from the previous session's steep plunge, breaking through the psychological barrier of $3,400 per ounce on Thursday. The precious metal had declined on Wednesday as China and the U.S. prepared for trade talks scheduled this weekend.

"These are merely talks about talks, setting the agenda for more substantive negotiations in the future. But the very fact that both sides are communicating is undoubtedly positive news," said David Morrison, senior market analyst at Trade Nation. "Given the gains seen in the first two trading days this week, we can expect either some degree of market pullback or at least a period of consolidation."

According to FXStreet data, gold prices may extend their gains as the daily chart oscillators remain strongly in positive territory, signaling sustained upward momentum.

FXStreet analyst Dhwani Mehta noted that gaining momentum above the 3,434−3,435 zone (this week's high) would reinforce the bullish outlook, potentially enabling gold to challenge record highs and target the $3,500 level.