· Gold prices rose on Friday and were on track to post a weekly gain, consolidating above $1,400 as renewed Sino-U.S. trade tensions amid global growth jitters and prospects of an interest rate cut by the U.S. Federal Reserve stoked safe-haven demand.

Spot gold was up 0.6% at $1,411.67 per ounce as of 0728 GMT. Gold has risen nearly 0.9% so far this week.

U.S. gold futures gained 0.3% to $1,411.30 an ounce.

· “We have a slightly weaker U.S. dollar, tensions in the Middle East and once again, prolonged trade dispute between the U.S. and China, which are all supportive,” said Michael McCarthy, chief market strategist, CMC Markets.

Fed Chair Jerome Powell indicated on Thursday that a rate cut is likely at the Fed’s next meeting as businesses slow investment due to trade disputes and a global growth slowdown.

Meanwhile, U.S. President Donald Trump said China was not living up to promises it made on buying agricultural products from American farmers.

· The trade spat has spilled over to global markets and exacerbated economic jitters, with weak economic data from Singapore becoming the latest indicator of this trend.

· Adding to global uncertainties, Iran’s alleged attempt to block a British-owned tanker heightened tensions in the Middle East in the wake of attacks on tankers and the downing of U.S. drone by Iran in June.

Gold is considered a safe investment during political and financial uncertainty.

· On the technical side, spot gold is biased to break a support at $1,404 per ounce and retrace to the next support at $1,387, according to Reuters technical analyst Wang Tao.

· GOLD TECHNICAL ANALYSIS