Gold gains as U.S. dollar dips

Gold prices rose on Friday as the dollar faltered after softer-than-expected U.S. inflation data dimmed the case for a faster pace of policy tightening by the U.S. Federal Reserve, amid signs of movement in the Sino-U.S. trade standoff.

Spot gold was up 0.4% at $1,205.18 U.S. an ounce early Friday, after having hit its highest since Aug. 28 at $1,212.65 on Thursday. It has gained 0.8% so far this week, heading for its first weekly gain in three.

U.S. gold futures were mostly steady at $1,208.50 U.S. an ounce.

The ongoing trade rift between Washington and Beijing has prompted investors to buy the U.S. dollar in the belief that the United States has less to lose from the dispute.

Demand for the dollar eased this week on news that the White House had invited Chinese officials to restart trade talks. Beijing welcomed the invitation with the two countries now reported to be discussing the details.

Gold prices have declined about 12% from a peak in April amid intensifying global trade tensions and under pressure from rising U.S. interest rates.

Meanwhile, spot silver was up 0.1% at $14.18 U.S. per ounce. Platinum increased 0.4% to $803, after touching a one-month high of $812.30 on Thursday. Palladium fell 0.1% to $981.25 U.S. per ounce.