Gold prices fell nearly 1% on Friday, as investors collected profits after U.S. President Donald Trump’s latest blow in the year-long trade spat with China increased demand for the safe-haven metal in the previous session.
Spot gold was down 0.5% at $1,438.16 U.S. per ounce early Friday morning, after hitting a two-week high of $1,446.10 earlier in the session.
The shiny yellow metal has risen about 1.4% so far this week, aimed at achieving a third weekly gain in the last four. U.S. gold futures rose 1% to $1,446.80 U.S. an ounce.
The metal jumped more than 2% on Thursday after Trump said he would impose an additional 10% tariff on $300 billion worth of Chinese imports from next month, intensifying the bruising trade war between the world’s two top economies that has roiled financial markets globally.
Trump also said if trade negotiations fail to progress he could raise tariffs further - even beyond the 25% levy he has already imposed on $250 billion of imports from China.
Spot gold may retest a resistance at $1,449 U.S. per ounce, a break above which experts say could lead to a gain into the range of $1,461-$1,474 U.S.
Elsewhere, palladium was up 0.3% at $1,427.75 U.S.per ounce after falling to a seven-week low in the previous session, and was on track for its worst week in four months.
Platinum was flat at $848.69 U.S. an ounce, while silver fell 1% to $16.16 U.S.
