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(Bloomberg) — Gold ( GC=F ) fell to extend its weekly loss, as investors booked profits after tensions eased between the US and China this week, cutting demand for haven assets.

Bullion fell as much as 1% to trade near $3,220 an ounce. Traders exited positions after the metal climbed in the previous session on stronger expectations for Federal Reserve rate cuts following weak US data.

Progress on trade negotiations between the US and China has also sapped appetite for haven demand, adding to bearish headwinds for gold as the detente between the world’s two largest economies led to a sharp rebound in risk assets this week.

Gold is seeing some “fatigue, as tariff de-escalation takes away some uncertainty, at least for now,” said Christopher Wong, a currency strategist at Oversea-Chinese Banking Corp. Still, “rising protectionism, shifts in global supply chains, and questions around the dollar’s status as a safe haven and primary reserve currency are some of those factors supporting the appeal of gold as a portfolio hedge,” he added.

The precious metal remains on track for a weekly decline of about 3% and is around $280 below its all-time peak set last month. Despite that, bullion is up by more than a fifth this year, fueled by a rebound in demand for bullion-backed exchange-traded fund products, strong central bank buying and speculative Chinese demand.

Spot gold was down 0.6% to $3,221.43 an ounce as of 7:25 a.m. in London. The Bloomberg Dollar Spot Index fell 0.2%. Silver ( SI=F ), palladium ( PA=F ) and platinum ( PL=F ) dropped.