Gold Could Drop for 3rd Straight Week

Gold prices were rangebound on Friday as monetary-easing uncertainties by major central banks supported demand while trade talk optimism lifted other assets, curbing gold’s gains.

Spot gold rose 0.4% to $1,503.93 U.S. per ounce. Prices are down about 0.3% so far this week in what could be their third straight weekly drop.

U.S. President Donald Trump said on Thursday he preferred a comprehensive trade deal with China but did not rule out the possibility of an interim pact, even as he said an "easy" agreement would not be possible.

The two countries have been making conciliatory gestures ahead of scheduled trade talks next month, lowering the tension between them and cheering investors.

European Central Bank Chief Mario Draghi pledged indefinite stimulus on Thursday to revive an ailing euro zone economy.

The bigger-than-expected stimulus will increase pressure on the U.S. Federal Reserve and the Bank of Japan to ease policy next week to support a world economy increasingly characterized by low growth and protectionist threats to free trade.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the U.S. dollar.

Palladium fell 0.6% to $1,612.56 U.S. per ounce, after hitting an all-time high of $1,621.55 on Thursday as possible labour issues in South African mines stoked supply concerns.

Palladium was on track for a sixth straight weekly gain, its longest hot streak since 2016.

Silver rose 0.3% to $18.15 U.S. per ounce, while platinum inched 0.4% higher to $954.78 U.S. Platinum was set to gain for a fourth week.