Gold prices held firm on Friday, on increased trade tensions after U.S. President Donald Trump's tariff increase on $200 billion worth of Chinese goods took effect, putting the bullion on track for a weekly gain.
Spot gold was steady at $1,284 U.S. per ounce early Friday morning and is up about 0.4% for the week. U.S. gold futures were also firm at $1,285 an ounce.
Trump's tariff increase to 25% on $200 billion worth of Chinese goods became a reality on Friday, and Beijing said it would strike back, ratcheting up tensions as the two sides pursue last-ditch talks to try salvaging a trade deal.
Top U.S. and Chinese trade negotiators concluded the first of two days of talks on Thursday to rescue a trade deal that is close to collapsing as Washington goes ahead with plans to hike tariffs on hundreds of billions of dollars of goods imported from China.
The shiny yellow metal had fallen to its lowest since the end of December late last week, but has since risen nearly 1.4%.
However, climbs in gold have been somewhat muted despite broad risk-aversion in the market, with other safe havens such as the yen and Swiss Franc gaining.
Meanwhile, palladium rose 1% to $1,307 U.S. an ounce, having fallen over 4% in the previous session to its lowest since Jan. 4 at $1,263.85. The metal is still on track for its second straight weekly decline.
Silver edged up 0.2% to $14.78 U.S. per ounce, while platinum rose 1.6% to $858.
Silver is on course to register a second straight week of declines, while platinum looks set to run its losing streak to three weeks.
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