Gold prices nudged higher Friday as Asian shares fell on renewed political and economic concerns including China's weak growth, with the metal on track for a third straight weekly gain.
China's economy grew 6.5% in the third quarter from a year earlier, its weakest pace since the global financial crisis, and missed expectations as a years-long campaign to tackle debt risks and the trade war with the United States began to come into play.
Spot gold was up 0.2% at $1,227.41 U.S. per ounce early Friday, and about 0.8% higher for the week.
U.S. gold futures were up 0.1% at $1,230.90 an ounce.
Meanwhile, the European Commission said on Thursday a draft 2019 budget from Italy was in "particularly serious non-compliance" with EU rules, setting the stage for a possible unprecedented rejection of the country's fiscal plan.
The recent selloff in world stock markets has pointed up the appeal for gold, which is seen as a safe store of value during political and economic uncertainty, driving prices to a 2-1/2-month peak of $1,233.26 U.S. on Monday.
However, the yellow metal has declined about 10% from its April peak after investors preferred the dollar as the U.S.-China trade war unfolded against a background of higher U.S. interest rates.
