Investing.com-- Gold prices rose in Asian trading on Friday as the dollar dipped ahead of U.S. payrolls data, although gains were limited as China signaled potential trade talks with President Donald Trump’s administration.

The yellow metal suffered consecutive sharp declines in the last three days amid signs of easing trade tensions, poising it to fall 2% for the week.

As of 01:53 ET (06:53 GMT), Spot Gold rose 0.5% to $3,255.95 per ounce, while Gold Futures expiring in June gained 1.2% to $3,232.24 an ounce.

Gold set for weekly loss amid easing trade tensions

China on Friday said it was evaluating the possibility of trade talks with the U.S., stating that any dialogue must be based on sincerity and the removal of unilateral tariffs.

China added that if the U.S. wanted to talk, it must show sincerity and cancel the unilateral tariffs.

The Trump administration has also reached out to China to initiate trade talks, a Chinese state-affiliated media outlet reported a day earlier.

The sentiment around the trade war had been improving this week, helped by U.S. President Donald Trump signing two orders on Tuesday to ease the impact of auto tariffs.

This led to increased risk appetite and reduced demand for safe-haven assets like bullion. Gold prices declined for the week after recently scaling record highs amid escalated global uncertainties.

US dollar dips ahead of payrolls data

The US Dollar Index edged 0.2% lower in Asian trading on Friday, making gold cheaper for foreign buyers.

Among other precious metals, Silver Futures rose 1.4% to $32.625 an ounce, while Platinum Futures climbed 0.9% to $982.35 an ounce.

Investors now await the monthly U.S. non-farm payrolls report due later on Friday, to gauge the Federal Reserve’s rate outlook.

Gross domestic product data released earlier this week showed the U.S. economy unexpectedly contracted in the first quarter.

Copper jumps on China trade talk hopes

Copper prices rose sharply on Friday on optimism around easing trade tensions for China, the world’s largest importer of the red metal.

Benchmark Copper Futures on the London Metal Exchange jumped 1.9% to $9,379.35 a ton, while Copper Futures expiring in July rose 1.1% to $4.6843 a pound.