- Palladium retreats from record peak; set for 6th weekly gain
- Platinum on track for fourth consecutive weekly gain
- Markets await US retail sales data due at 1230 GMT
Gold prices rose back above the key $1,500 level on Friday as the US dollar slipped on the back of a strong euro, though hopes for a thaw in Sino-US trade tensions supported equity markets, capping bullion's gains.
Spot gold rose 0.5% to $1,506.61 per ounce as of 0951 GMT, but was marginally down for the week.
US gold futures rose 0.5% to $1,514.30 per ounce.
"The main reason is that the dollar is lower. Market focus is now on the Federal Reserve meeting and retail sales data, which is due today," ABN Amro analyst Georgette Boele said.
The US dollar slipped from an over one-week high scaled in the previous session as the euro surged on rising German bond yields as investors bet the European Central Bank was done cutting interest rates.
Investors are now awaiting the US central bank meeting next week where it is expected to slash its benchmark interest rate by at least 25 basis points for the second consecutive time.
Markets are also keeping a close watch on any economic data from the United States to gauge the economy's strength ahead of the monetary policy meeting. The US retail sales report is due at 1230 GMT on Friday.
Analysts said that fears of a deceleration in global economic growth and a plethora of negative-yielding government debt around the world, along with dovish monetary policy outlook by global central banks will be supporting bullion longer term.
"(Gold) is still in a lateral trading range. We are seeing a technical rebound from the $1,500 level. The support level of $1,500 is quite strong and is holding prices up," ActivTrades chief analyst Carlo Alberto De Casa said.
However, bullion's upside was limited as global equities climbed to a six-week high on signs of progress in US-China trade talks.
US President Donald Trump said he preferred a complete trade deal with China but did not rule out the likelihood of an interim pact, even as he said an "easy" agreement wouldn't be possible, ahead of scheduled talks next month.
Elesewhere, palladium fell 0.7% to $1,606.56 per ounce, after hitting an all-time high of $1,621.55 on Thursday as possible labour issues in South African mines stoked supply concerns in an already tight market.
The auto-catalyst metal, however, was up over 4% so far this week and was on track for a sixth straight weekly gain.
Silver rose 0.4% to $18.16 per ounce, while platinum inched 0.5% higher to $955.76. It is set to gain for a fourth week.