By Brijesh Patel
(Reuters) – Gold prices rose on Friday and were headed for a weekly gain, supported by a weaker dollar and lingering geopolitical tensions, while focus remained on U.S.-China trade talks due this weekend.
Spot gold was up 0.7% to $3,326.99 an ounce at 0847 GMT. The metal has gained 2.5% so far this week. U.S. gold futures were up 0.7% to $3,328.10.
The dollar index slipped 0.3%, making gold more attractive for holders of other currencies.
“The exaggerated moves (in gold) suggest there is strong buying on the one hand on economic uncertainty, while strong selling is in evidence as some see the higher prices as an opportunity to take profit,” said Ross Norman, an independent analyst.
“Markets are particularly focused on a possible U.S.-China trade deal … Equally, minds are also concerned about the India/Pakistan crisis.”
U.S. and Chinese officials will meet in Switzerland over the weekend, in a possible first step in dialling down the damaging trade war between the world’s two biggest economies.
Gold, used as a safe store of value during times of political and financial uncertainty, scaled an all-time high of $3,500.05 per ounce last month, boosted by central bank buying, tariff war fears and strong investment demand.
On the geopolitical front, Pakistan’s armed forces launched multiple attacks using drones and other munitions along India’s western border on Thursday night and early Friday, the Indian army said.
Also on the radar, several U.S. Federal Reserve officials are scheduled to speak later in the day, potentially providing further insights into the economy and the central bank’s policy path.
Elsewhere, spot silver gained 0.3% to $32.56 an ounce, platinum rose 0.9% to $984.16 and palladium climbed 0.4% to $979.75.
(Reporting by Brijesh Patel in Bengaluru. Editing by David Goodman and Mark Potter)
