Gold climbed to a more-than-six-month high on Friday, as concerns about slowing global economic growth and a partial government shutdown in the United States stoked safe-haven demand, although gains in equities capped the upside.
Spot gold had risen by 0.5% to $1,281.08 U.S. per ounce early Friday morning, and was set for a second straight weekly gain with no end in sight for China-U.S. trade tensions and political uncertainty in the United States.
The precious metal hit its highest level since June 19 at $1,281.39 U.S. earlier in the session.
U.S. gold futures inched up 0.2% to $1,283.20 per ounce on Friday.
Financial markets are expecting U.S. growth to slow next year as a result of rising interest rates. A measure of U.S. consumer confidence posted its sharpest decline in more than three years in December, emphasizing that possibility.
Adding to worsening trade tensions between the world’s two biggest economies, U.S. President Donald Trump is considering an executive order that would bar U.S. companies from using telecommunications equipment made by China’s Huawei and ZTE.
Gold is often used by investors as a hedge against political and financial uncertainty.
Meanwhile, platinum rose 0.1% to $796.74 U.S. per ounce, while palladium dipped 0.8% to $1,264.90. Palladium has gained about 3% this week.
