· Gold was steady on Friday but still on track for a second weekly gain as sluggish U.S. economic data stoked worries about a global slowdown and investors awaited signals on U.S.-China trade talks.
· Spot gold was up 0.53 percent at $1,330.38 per ounce by 1:57 p.m. ET.
· U.S. gold futures were settled $5 higher at $1,332.80 per ounce.
· "The market is expecting the dollar to weaken. We expect growth in the U.S. to slow," said Natixis analyst Bernard Dahdah.
· The dollar index fell 0.16 percent versus six major currencies on Friday and set for its biggest weekly fall in a month. The U.S. currency, which has been a refuge for investors during the U.S.-China trade spat, has come under pressure on signs of a breakthrough in talks.
· Minutes of the U.S. Federal Reserve's last meeting painted a less dovish picture than expected on future interest rates hikes, weighing on gold in the last two sessions. Higher rates reduce investor interest in non-yielding bullion.
But data showing new orders for key U.S.-made capital goods unexpectedly fell in December, revived some market expectations that the central bank would halt the 2019 rate hike cycle.
It added to jitters about a slowdown in Europe and China, which analysts said bolstered the appeal of gold, considered a safe haven in times of uncertainty.
· "The main target (for gold) is still the technically important area between $1,350 and $1,360 above which would be a one-year high," said Ronan Manly, a precious metals analyst at BullionStar Singapore.
· Investor attention has turned to U.S. and Chinese trade talks, which have shown some positive signs.
But holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped 0.6 percent to 789.51 tonnes on Thursday.
· Dahdah at Natixis said the slight pullback did not signal a shift by gold investors since the levels were still close to highs recorded at the start of 2019.
· Elsewhere, palladium gained 1.74 percent to $1,494 per ounce, having topped the psychologically significant $1,500 level for the first time on Feb. 20.
The autocatalyst metal was on track for a third straight week of gains, up about 3.4 percent.
Platinum rose 2.44 percent to $839, and was set for its best week since early January. Silver was up 0.79 percent to $15.94, poised to snap two weekly losses.
Reference: CNBC
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