Gold prices edged higher on Friday but were on track to post their biggest weekly drop in two months as a long awaited U.S.-China Phase-One trade deal fueled risk appetite.
Spot gold rose 0.2% to $1,555.24 U.S. per ounce overnight heading for a weekly drop of 0.4% - its biggest since the week ended Nov. 8.
U.S. gold futures rose 0.3% to $1,555.40 U.S.
Data showed China’s economic growth slowed to its weakest in nearly 30 years in 2019 amid the trade war with the United States and sputtering investment, although positive industrial production and retail sales data supported risk sentiment.
Limiting gold’s upside, Asian shares rose as investors latched on to the positive readings from the Chinese data, and following through from the record run in global stock indexes after the phase-one trade deal was signed.
Gold is considered a safe asset in times of political and economic uncertainty.
In other metals, palladium soared 2.2% to $2,362.71 U.S. an ounce, after hitting a record high of $2,395.13 on Thursday, and was set for its biggest weekly gain since March 2016 having risen nearly 12% so far.
Platinum jumped 0.9% to $1,012.58 U.S., after hitting its highest since February 2017 at $1,041.05 in the previous session.
