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Gold remained steady on Friday amid concerns that a prolonged trade war between Canada and the United States could worsen the global economic slowdown, but a strong dollar helped the target lose its first three-in-a-week loss. .
Spot gold remained steady at $ 1,309.34 per ounce, at 3:20 GMT, after the metal hit its lowest level since Jan. 29 at $ 1,302.11 on Thursday.
The US gold futures also remained unchanged at $ 1,313.10.
US President Donald Trump said on Thursday that he was not planning to meet with Chinese President Xi Jinping before the deadline of March 1 for the two countries to reach a trade deal. Both countries had taken a 90-day break in their trade war to reach an agreement.
Inventories fell sharply worldwide due to fears of slowing global growth in Europe and uncertainties over trade tensions between the United States and China.
"Some of our growth indicators clearly see a slowdown in global activity and trade volumes affected.This makes people cautious and could get support for gold between 1,300 and $ 1,330, "said John Sharma, an economist at the National Australian Bank.
The European Commission has sharply lowered its economic growth forecasts for the euro area this year and, as expected thereafter, the largest European Union countries will be held back by global trade tensions and domestic challenges.
"People still do not know in which direction the trade war could go," Sharma said, adding that the strength of the US dollar also limited gains on gold.
The dollar index, an indicator of its value compared to six major peers, was near its two-week high.
"Negative discussions on trade have allowed some safe haven purchases to resume," ANZ badysts said in a note, adding that sharp declines in equity markets have helped boost equity prices. gold.
Bullion prices have risen about 13% since their high in a year and a half in August, mainly due to stock market volatility, the weaker dollar and the US Federal Reserve.
But a strong dollar, which makes bullion more expensive for holders of other currencies, pushed gold down by 0.6% this week.
The decline in gold, after peaking at $ 1,326.30 in nine months, hit last week, has resulted in cash outflows from the country's largest exchange-traded fund backed by gold. world, SPDR Gold Trust.
SPDR gold holdings fell for a fifth consecutive session Thursday, losing more than 1% for the week, which could be their worst fall since the week ended Oct. 7.
Among other precious metals, palladium remained steady at $ 1,386 per ounce, silver down 0.1% to $ 15.70 and platinum down 0.4% to $ 793.
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