Gold has edged higher as volumes remain thin in cautious holiday trade, supported by global economic growth concerns and US-China trade uncertainties.
Spot gold was up 0.1 per cent at $US1,513.36 per ounce on Firday, having risen to a near two-month high of $US1,515.09 in the session.
It had gained more than 2.0 per cent during the week, the most since the week ended August 9.
US gold futures settled 0.2 per cent higher at $US1,518.10 per ounce.
“The US-China trade deal, although it has a lot of positive news flowing in, has nothing yet on paper under a seal. That is keeping investors a little cautious,” said Chris Gaffney, president of world markets at TIAA Bank.
Beijing said on Wednesday it was in close touch with Washington on a trade deal signing ceremony, a day after US President Donald Trump said he and Chinese President Xi Jinping would have such an event.
However, with expectations that the Phase 1 deal would have been stamped much before the end of the year, investors are wary with every passing headline.
The 17-month long trade spat between the world’s two largest economies has compelled numerous central banks to resort to monetary easing.
Gold benefits from an environment of lower interest rates as it yields no interest.
“On the other hand a positive note on the global economic environment is boosting equities and weighing on gold prices. The volumes are also pretty low,” Gaffney added.
Wall Street opened at a record high on Friday, and world stocks hovered near an all-time peak.
Profits at industrial companies in China in November grew at the fastest pace in eight months, breaking a three-month declining streak, as production and sales quickened.
Investors are optimistic that gold prices will go up in the near future, and are buying when prices go down, said Michael Matousek, head trader at US Global Investors.
Economic and geopolitical uncertainties and a debt environment are also providing support to gold prices, he added.
Elsewhere, silver eased 0.3 per cent to $US17.84 an ounce.
It was up nearly 4.0 per cent for the week, extending gains into a third week.
Platinum edged 0.1 per cent higher to $US947.58 an ounce, while palladium gained 0.3 per cent to $US1,905.57 an ounce, up nearly 3.0 per cent in the week.