Prices for gold moved upward on Friday, on track to post a weekly gain, consolidating above $1,400 U.S. as renewed China-U.S. trade tensions amid global growth jitters and prospects of an interest rate cut by the U.S. Federal Reserve stoked safe-haven demand.
Spot gold was up 0.6% at $1,411.67 U.S. per ounce early Friday morning, having rise nearly 0.9% so far this week.
U.S. gold futures gained 0.3% to $1,411.30 U.S. an ounce.
U.S. President Donald Trump said China was not living up to promises it made on buying agricultural products from American farmers.
The trade spat has spilled over to global markets and exacerbated economic jitters, with weak economic data from Singapore becoming the latest indicator of this trend.
Investors will now scan trade and lending data from China on Friday for confirmation on the fallout of the dispute, with the world’s second-largest economy expected to have slowed to its weakest pace in at least 27 years.
Gold is considered a safe investment during political and financial uncertainty.
Also, a slightly weaker dollar was helping gold’s case, making the metal cheaper for investors holding other currencies. U.S. unit was heading for weekly decline after surging more than 1% last week.
Among other precious metals, silver rose 0.3% to $15.16 U.S. per ounce and platinum gained 0.7% to $826.
Palladium fell 0.2% to $1,557.50 U.S. an ounce, edging away from a 16-week peak touched in the previous session.
