Gold gains on U.S.-China worries; set for a weekly drop

An ethnic Chinese-Thai man holds gold goods for customers at a gold shop in Bangkok's Chinatown, Thailand. EPA/NARONG SANGNAK

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Gold prices inched up on Friday, after falling more-than 1% in the previous session, as rising concerns over U.S.-China relations weighed on risk appetite, although the metal still looked to be headed for a weekly loss.

Spot gold climbed 0.1% to $1,727.43 per ounce by 0029 GMT but was down about 0.8% for the week so far. U.S. gold futures rose 0.3% to $1,727.00.

Gold is seen as a safe-haven asset during political and economic uncertainties.

Gold has held ground above the key $1,700 per ounce level,building impetus to reach its 2011 peak in the coming quarters,Fitch Solutions said in a note.

The lower-for-longer interest rates with quantitative easing in full swing, macro and geopolitical uncertainty and strong investor flows should continue to support gold prices on a 6-12 month horizon, Fitch added.

Palladium gained 1.2% to $2,037.40 per ounce, and was looking to post its best week since end-March.

Platinum  fell 0.6% to $827.62 and silver slid 1.5% to $16.81.

Via Reuters

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