Spot gold was up 0.1 percent at $1,227.90 per ounce at 0439 GMT. The yellow metal was up around 0.5 percent after a 1 percent gain last week.
U.S. gold futures edged 0.1 percent higher at $1,228.9 per ounce.
· President Xi Jinping is due to hold talks with U.S. President Donald Trump at the G20 meeting that starts on Nov. 30 in Argentina to reconcile their trade dispute.
The U.S. is set to raise its tariffs to 25 percent on $200 billion of Chinese imports on Jan. 1 from 10 percent currently. Trump has also threatened to impose tariffs are all Chinese imports unless U.S. demands are addressed.
· "Investors are stepping in to hedge some of the possible tail risk from the G20 meeting next week," said Stephen Innes, APAC trading head at OANDA in Singapore, adding the weaker dollar and U.S. Federal Reserve's rate outlook are also supporting gold prices.
"A good sizeable portion of the investment community is looking to position long on gold and that has compounded with the fact that the Fed has turned somewhat dovish," Innes said.
· Investor interest in bullion was reflected in holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, which rose on Wednesday to their highest since the end of August.
Spot gold may test a support at $1,211 per ounce, as it is peaking around a resistance at $1,231, according to Reuters technical analyst Wang Tao.
· Among other precious metals, silver was up 0.3 percent at $14.50 an ounce, while platinum edged 0.1 percent lower at $843.30per ounce.
· Palladium was down 0.2 percent at $1,150.74 an ounce. The metal was headed for its biggest weekly percentage decline since the week of July 20, down about 2.3 percent so far.
· Gold (futures on Comex) found buyers in Asia once again near the 1227 level, now heading back towards the two-week tops of 1229.70 reached a day before.
The yellow metal remains on the front foot so far this Friday, as the US dollar extends its softness across the board into a third straight session, as markets remain wary over the Fed’s rate hike outlook amid mounting concerns about a potential global slowdown. The US dollar index trades weaker near 96.50 level, looking to test Thursday’s low at 96.32.
Moreover, gold prices derive support from the mixed tone seen on the Asian equities, as the Chinese stocks get sold-off into looming US-China trade concerns and Chinese growth concerns. However, it remains to be seen if the bullion can sustain the upbeat momentum, as positive Treasury yields combined with sowing volumes could limit further upside.
Further, markets may prefer to remain in a wait and see mode ahead of the meeting between the US President Trump and his Chinese counterpart Xi at this month’s G20 summit in Argentina.
Reference: CNBC,FXStreet
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