Gold prices steadied on Friday, but remained on course for their best week since March 2018, after rising expectations for a U.S. rate cut and concerns that trade tussles could hit global growth boosted demand for safe-haven bullion.
However, having failed earlier this week to breach its 2019 high of $1,346.73 U.S., analysts expect the metal to consolidate until there is fresh momentum.
Spot gold was steady at $1,335.27 U.S. per ounce Friday morning, while U.S. gold futures were down 0.2% to $1,339.60.
Gold has rallied in a short span of time, having gained about 2.3% this week, and is on track for its best seven days since week ending March 23, 2018.
American and Mexican representatives concluded their second day of talks on trade and migration on Thursday and markets rebounded on optimism a deal could be close. However, it remains unclear whether Mexican pledges to curb migration flows will be enough to persuade Washington to postpone tariffs.
U.S. President Donald Trump said he would decide whether to carry out his threat to hit Beijing with tariffs on at least $300 billion in Chinese goods after a meeting of leaders of the world’s largest economies late this month.
Gold’s appeal as a safe-haven investment is bolstered in times of geopolitical uncertainty.
Among other metals, silver rose 0.5% to $14.93 U.S. per ounce, on track for its best week since late January.
Platinum edged 0.1% higher to $804.06 U.S. an ounce. The metal was headed for its first weekly gain in seven.
Palladium dipped 0.1% to $1,350.75 U.S. an ounce.
