Gold prices reversed course to trade higher overnight Friday en route to their best week in nearly two months, as investors sought safe-haven assets after U.S. President Donald Trump tested positive for COVID-19. Gains were, however, capped by a firmer dollar.
Spot gold was up 0.1% at $1,907.29 U.S. per ounce. U.S. gold futures eased 0.2% to $1,913.00.
Bullion has gained 2.5% so far in the week, heading for its biggest weekly percentage rise since the week ended Aug. 7.
Caution set in broadly across markets as U.S. stock futures extended losses after Trump said he and his wife had tested positive for the novel coronavirus, weeks ahead of elections.
On Thursday, the U.S. House of Representatives approved a $2.2-trillion Democratic party plan to provide more economic relief from the COVID-19 pandemic, as a bipartisan deal continued to elude House Speaker Nancy Pelosi and the White House.
Gold tends to benefit from widespread stimulus measures as it is widely viewed as a hedge against inflation.
Elsewhere, silver fell 0.5% to $23.78 U.S. per ounce, but was up more than 3% for the week. Platinum slipped 0.8% to $888.83 U.S. and palladium eased 0.3% to $2,307.79 U.S..
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