Gold Expects Biggest Weekly Gain Since March 2018

Gold prices stabilized on Friday but continued to move towards their biggest weekly gain since March 2018, after rising expectations for a US rate cut and concerns over trade disputes boosted demand for bullion.

However, having failed earlier this week to break the 2019 high of $ 1,346.73, analysts expect the metal to consolidate until fresh momentum emerges.

Spot gold remained stable at $ 1,335.35 an ounce at 1153 GMT, while US gold futures were down 0.2% to $ 1,339.60.

“Gold is up significantly earlier this week, but we are heading for levels where the market will struggle to move much higher,” said ING analyst Warren Patterson.

Gold has risen in price in a short space of time, adding about 2.3% this week.

"Overall, sentiment remains very favorable for the gold market," Patterson added, explaining the recent escalation in the US bilateral trade squabble with Mexico and China and hoping for an interest rate cut by the US Federal Reserve.

The United States and Mexico concluded their second day of trade and migration talks on Thursday, and markets recovered on optimism that a deal could be close. However, it remains unclear whether Mexican promises to curb migration flows will be enough to convince Washington to postpone tariffs.

US President Donald Trump has said he will decide whether to carry out his threat to hit Beijing with at least $ 300 billion in tariffs on Chinese goods following a meeting of the leaders of the world's largest economies later this month.