Gold edged higher on Friday, after dropping for the past four out of five sessions, as falling Asian and U.S. stock markets underpinned the precious metal although gains were capped by expectations of another U.S. interest rate increase.
In the U.S., the Dow Jones industrial average, NASDAQ and S&P 500 were all down more than 2%.
Spot gold added nearly 1% to $1,087.83 U.S. an ounce, while U.S. gold futures gained about 1.3% to $1,087.90 U.S.
The metal hit a two-month high at $1,112 U.S. last week as volatility in Chinese stocks hit appetite for risk, but trading has since fallen as expectations of further U.S. interest rate increases lowers demand for the non-interest-paying asset.
Among other metals, silver is trading higher 19 cents, at 13.94 U.S., up about 0.5% this week after gaining 1% last week, palladium is trading down $1.95 at $493.20 U.S. after sliding 12% last week and platinum is trading 0.4% lower at $831.10 U.S., down almost 5% in its second week of decline.
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