Gold prices edged up on Friday to a one-week high as the American dollar weakened on receding fears of a full-blown Sino-U.S. trade war, keeping the yellow metal on track for its first weekly gain in four.
Spot gold added 0.1% to $1,208.00 U.S. early Friday, after touching its highest since Sept. 13 at $1,210.01. It has risen 1.3% so far this week.
U.S. gold futures were up 0.1 percent at $1,212.70 an ounce.
New U.S. and Chinese tariffs on each other's goods were set at lower rates this week than previously expected, raising hopes that hostilities between the world's two largest economies may be easing.
Investors have been buying the dollar believing that the United States has less to lose from the dispute. But the dollar has weakened this week, with investor flows being diverted away from the greenback to its peers such as emerging market currencies as trade war concerns have ebbed.
Gold has declined about 11.6% from a peak in April, hurt by the intensifying U.S.-China trade dispute and on rising U.S. interest rates.
Investors are awaiting next week's Federal Reserve meeting. The U.S. central bank is widely expected to raise benchmark interest rates and shed light on the path for future rate hikes.
Among other precious metals, spot silver rose 0.6% to $14.35 U.S., after rising to two-week highs of $14.387.
Palladium touched its highest since April 19 at $1,054.80 U.S. per ounce on Thursday. It was last down 0.1% at $1,048.50.
Platinum hit its highest since Aug. 9 at $836.40 U.S.
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