Gold rose on Friday en route to a second weekly gain as the dollar was subdued by weak US economic data and hopes of a breakthrough in the US-China trade dispute, with a darkening global economic outlook bolstering interest in bullion.
Spot gold was up 0.5 percent at $1,329.42 per ounce by 1603 GMT, or higher by about 0.6 percent thus far this week.
US gold futures were down 0.3 percent at $1,331.70 per ounce.
The metal had fallen about 1 percent on Thursday following the release of minutes from the US Federal Reserve's last policy meeting, which painted a less dovish picture than expected.
"Gold should be doing a little better, because there are possibilities of a trade deal, which would mean the dollar could weaken; the US economy is also slowing quite markedly, that should keep interest rates fairly dormant," INTL FCStone analyst Edward Meir said.
Higher rates reduce investor interest in non-yielding bullion.
The dollar index, though little changed versus six other major currencies on Friday, was set for its biggest weekly fall in a month, bolstering the appeal of gold.
The US currency, which has been a refuge for investors during the US-China trade dispute, has come under pressure on signs of a breakthrough in talks.
Also helping the case for gold, new orders for US-made capital goods unexpectedly fell in December, reviving some market expectations that the Fed would halt its 2019 rate-increase cycle.
The news added to concerns about a slowdown in Europe and China, which analysts said have prompted increasing interest in gold, considered a safe haven in times of economic and political uncertainty.
However, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped 0.6 percent to 789.51 tonnes on Thursday.
Natixis analyst Bernard Dahdah 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 1.5 percent to $1,480.17 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 4.2 percent.
Platinum rose 2.2 percent to $837, and was set for its best week since early November 2018. Silver was up 0.7 percent to $15.93, poised to snap two weekly losses.