Prices for gold firmed on Friday as doubts persisted over the prospects of an interim trade deal being struck between United States and China this year, while supply-squeezed palladium was en route to its best week in 10.
Spot gold was up 0.2% at $1,467.26 U.S. an ounce early Friday morning. U.S. gold futures rose 0.3% to $1,467.40 U.S.
China wants to work out an initial trade pact with the United States, but is not afraid to retaliate if necessary, President Xi Jinping said. Beijing has invited top U.S. trade negotiators for a new round of face-to-face talks.
Investors were also wary that bills passed by Washington to support anti-government protesters in Hong Kong, which has been paralysed by demonstrations for more than five months, could thwart progress towards an interim trade deal.
The trade dispute was a key factor, against the backdrop of a hold on monetary policy easing by the U.S. central bank. The Federal Reserve has cut interest rates three times this year to help shield the economy from the effects of the trade war before deciding to pause.
Lower interest rates reduce the opportunity cost for holders of bullion, an asset that brings no interest.
Elsewhere, platinum dipped 0.7% to $908.85 U.S. per ounce, but was on track to add about 2% for the week. Silver rose 0.3% to $17.14 U.S.
Palladium traded unchanged at $1,761 U.S. per ounce, but eyed its best week in 10, gaining more than 3%. The metal, used in vehicle exhaust systems to reduce harmful emissions, jumped to a record high of $1,824.50 U.S. last month on a sharp supply crunch.
