Gold firmed on Friday as doubts persisted over the prospects of an interim trade deal being struck between United States and China this year, while supply-squeezed palladium was en route to its best week in 10.
Spot gold was up 0.2% at $1,467.26 an ounce by 0747 GMT. US gold futures rose 0.3% to $1,467.40.
China wants to work out an initial trade pact with the United States, but is not afraid to retaliate if necessary, President Xi Jinping said. Beijing has invited top US trade negotiators for a new round of face-to-face talks.
"The market doesn't have faith in a trade deal, and it doesn't think the second round of talks will be very successful, as the decisions from the first (round of talks) are yet to be implemented," said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.
The tariff war between the world's top two economies has propelled gold, traditionally a safe asset in times of political and economic uncertainty, about 14% higher this year, on track for its biggest yearly gain since 2010.
Comments
Comments are closed for this article.