Gold prices eked up on Friday after falling nearly 1% the day before, but expectations of higher U.S. interest rates and a robust dollar amid the Sino-U.S. trade war kept a lid on the market.
Gold has lost its appeal as a safe-haven asset amid international trade disputes and the Turkish currency crisis, with investors increasingly turning to the U.S. dollar instead.
Spot gold was up 0.2% at $1,187.06 an ounce early Friday, after falling about $10.00 on Thursday. Prices have risen 0.2% so far this week, after dropping for six straight weeks.
U.S. gold futures were down 0.1% at $1,192.60 U.S. an ounce.
U.S. and Chinese officials ended two days of talks on Thursday with no major breakthrough as their trade war escalated with activation of another round of tariffs on $16 billion worth of each country's goods.
The American dollar eased 0.1% to 95.587 against a basket of six major currencies on Friday, after rising 0.6% the day before.
Gold has fallen about 9% so far this year on a firm dollar and rising interest rates. Prices touched 1-1/2-year lows last week, before recovering somewhat.
Spot silver was up 0.2% at $14.49 U.S. an ounce, after touching a one-week lows of $14.41 on Thursday.
Platinum was up 0.6% at $779.80 U.S. an ounce, after earlier hitting its lowest in a week at $769.50.
Palladium was steady at $915.50 U.S. an ounce.
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