Prices for gold resumed their march toward $1,900 on Friday as an escalation in the U.S.-China quarrel added further safe-haven fuel to a rally to a nine-year peak driven by fears over the economic hit from the coronavirus pandemic.
Silver, meanwhile, was en route to its best week since 1987.
Spot gold was up 0.3% Friday morning to $1,892.32 U.S. per ounce, having hit its highest since September 2011 at $1,897.91 on Thursday. U.S. gold futures rose 0.1% to $1,890.90.
In the latest flare-up, China ordered the United States to shut its Chengdu consulate in retaliation for the closure of its consulate in Texas, dampening risk assets.
Adding to the strength of gold, the U.S. dollar index held near a two-year low, and was on track for its biggest weekly decline since early June.
Silver, fell 0.5% to $22.61 U.S. per ounce, but was still up over 17% for the week, helped by hopes for a revival in industrial activity.
Platinum rose 0.7% to $911.23 U.S. and palladium climbed 1.5% to $2,157.40 U.S.
