Gold prices rose on Friday as the threat of a global trade war pushed shares and the dollar lower and spurred demand for assets such as bullion that are seen as safer investments.
U.S. President Donald Trump's decision on Thursday to place tariffs on imports of aluminium and steel raised fears of retaliation by other nations and knocked the dollar from a six-week high, making dollar-denominated gold cheaper for users of other currencies.
"The risk of trade wars which could impact economic growth and raise uncertainty plays into the hands of gold," Saxo Bank analyst Ole Hansen said.
Gold was, however, down 0.4 percent this week and on track for a second consecutive weekly loss. It touched $1,302.61, the lowest since Jan. 2, on Thursday, pushed down by expectations that the U.S. Federal Reserve will raise interest rates more aggressively than previously thought.
Higher interest rates are negative for gold because they raise bond yields, reducing the attractiveness of non-yielding gold, and tend to boost the dollar.