·         Gold slipped to the lowest in more than a week on Friday as hopes of a thaw in the U.S.-China trade dispute perked up stock markets, while palladium held above $1,400 on a supply crunch.

·         Spot gold was down 0.68 percent to $1,282.57 per ounce. U.S. gold futures settled down $9.70 at $1,82.60 per ounce.

·         “Rising risk appetite among market participants is reflected in the rising stock markets,” said Commerzbank analyst Daniel Briesemann, adding “today gold just does not seem to be in demand as a safe haven.”

“It looks like the $1,300 hurdle seems hard to overcome ... Gold has the potential to cross that mark and to move even higher but not for now.”

·         Global stocks rose to their highest in more than a month after a report suggested progress towards resolving the trade dispute between the United States and China, while the dollar was supported after U.S. Treasury yields rose amid improved risk appetite.

Autocatalyst metal palladium fell 1.36 percent to $1,377 per ounce, having hit an all-time high of $1,434.50 on Thursday. The metal is on track to rise for a fourth week in its strongest weekly gain since the week ended Sept. 21. It has risen around 12 percent so far this month.

The price of palladium, used mainly in emissions-reducing catalysts for vehicles, is up nearly 70 percent since a low marked in mid-August. Prices for the metal overtook gold for the first time in 16 years early in December.

·         Richard Baker, editor of the Eureka Miner Report, also looks for gold to climb, looking for $1,380 sometime in the first half of 2019.

“It is likely gold will push up next week against a backdrop of a prolonged U.S. government shutdown and continued turmoil in Washington,” he said. “Optimism is up that the U.S.-China trade negotiations are back on track for a deal this spring, but this could flip-flop in the coming weeks. I expect U.S. dollar strength will falter and resume decline towards its 200-day average.”

·         Ole Hansen, head of commodity strategy at Saxo Bank, said that he is bearish on gold in the short term but sees long-term potential for the yellow metal.

“The reasons for holding gold haven’t changed,” he said. “But gold is doing what it’s supposed to as a hedge; it's taking a breather as other asset classes rally.”

Reference: CNBC, KITCO