Prices for gold steadied on Friday as an escalation in U.S.-China tensions underpinned the safe-have appeal of the shiny yellow metal, although positive economic data and easing lockdowns in some countries set up the precious metal for a weekly drop.
Spot gold was trading at $1,727.39 U.S. per ounce early Friday morning, having dropped 1.4% on Thursday. U.S. gold futures rose 0.3% to $1,726.50 U.S.
Bullion had rallied to its highest since October 2012 on Monday, but has since lost ground and is now heading for a 0.8% weekly decline.
However, frictions between Washington and Beijing dampened risk appetite, underpinning bullion and offsetting pressure on the metal’s prices from the slightly better data.
Asian shares fell after China’s plan to impose a new national security legislation on Hong Kong drew a warning from U.S. President Donald Trump.
Gold has held ground above the key $1,700 U.S. per ounce level, building impetus to reach its 2011 peak in the coming quarter.
Elsewhere, palladium gained 1.2% to $2,037.40 U.S. per ounce, and was looking to post its best week since end-March.
Platinum fell 0.6% to $827.62 U.S. and silver slid 1.5% to $16.81 U.S..
