Palm Oil Set for Second Straight Weekly Decline

A trade deal with the U.S. won't act as a big spur for growth in the U.K. economy, Capital Economics' Paul Dales says. President Donald Trump said Thursday that his administration had reached a deal with the U.K. on a framework with an agreement that would include cutting tariffs on U.K. steel and cars in exchange for Britain buying Boeing products and allowing more access to the country for American farmers. But the deal is limited and in any case, Britain doesn't stand to suffer much compared with peer economies from Trump's tariffs, Dales says. "It follows that trimming some of those tariffs won't reduce that small drag by much," he says. (joshua.kirby@wsj.com; @joshualeokirby)

Palm oil prices are higher in Asian trade, tracking overnight gains in soybean oil on the Chicago Board of Trade and higher crude-oil prices, AmInvestment Bank says in a note. Stronger crude oil prices will support CPO prices, as it encourage palm oil's appeal as a biofuel alternative. Technical analysis suggests CPO futures turned neutral or slightly bullish, with AmInvestment Bank seeing support at 3,747 ringgit a ton and resistance at 3,894 ringgit a ton. The Bursa Malaysia Derivatives contract for July delivery is higher by 32 ringgit to 3,833 ringgit a ton. (yingxian.wong@wsj.com)

Iron ore prices fall as China looks to curb steel output, ANZ Research analysts write in a note. The China Iron and Steel Association say the government is actively deploying and promoting its crude steel production mandate. While no specific targets are released, there is market speculation that as much as 50 million tonnes of output a year could be curtailed, they add. Annual production remains stubbornly above 1 billion tonnes, they say. The most-traded iron ore contract on the Dalian Commodity Exchange is down 0.4% at CNY697.00 a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

Gold slipped to around $3,290 per ounce on Friday, falling for the third consecutive session, as optimism over US-China trade talks dented the appeal of safe-haven assets.

Officials from both nations are scheduled to meet this weekend, raising hopes of progress in resolving trade disputes.

The announcement of a US-UK trade agreement further eased concerns over global trade tensions.

Adding to the downward pressure on the non-yielding metal, the Federal Reserve kept its key interest rate unchanged, as expected, while warning of rising risks tied to both inflation and unemployment—reinforcing its cautious stance on future policy moves.

Fed Chair Jerome Powell also emphasized that the central bank is not considering a preemptive rate cut in response to potential economic fallout from tariffs.

Despite recent losses, bullion remains on track for a weekly gain.

Gold trading has likely found a new baseline "floor price" around $3,000-$3,100 an ounce, State Street Global Advisors' SPDR gold strategy team says in a note. Its base-case scenario is for gold to trade at $3,100-$3,500 an ounce in 2025. Under this scenario, "harsher trade and tariff rates are rolled back, including between U.S.-China, but policy uncertainty and tensions remain on the front foot for the balance of 2025," the team says. Other factors under this scenario include a Fed that is limited in its ability to lower rates owing to inflation uncertainty even as U.S. and global growth slows. Spot gold edges 0.1% lower to $3,301.57 an ounce. (ronnie.harui@wsj.com)

Brent crude oil futures rose toward $63 per barrel on Friday, modestly extending gains from the previous session and remaining on track for a weekly advance, supported by optimism over US-China trade talks.

Officials from both countries are set to meet this weekend, raising hopes of progress in resolving trade tensions between the world’s two largest oil consumers—and ease concerns over global crude demand.

The announcement of a US-UK trade agreement added to the upbeat sentiment.

Earlier in the week, a larger-than-expected drop in US crude inventories and early signs of a potential supply correction also lent support to prices.

However, gains remain limited by several headwinds, including OPEC+ plans to boost production, rising US economic uncertainty, and the potential impact of a US-Iran nuclear deal on global oil supply.