Gold price drops to $1,550.96 per ounce as investors go for riskier assets

Gold price edged lower on Friday, on track to post its worst week in two months, as positive US economic data and optimism over an interim US-China trade deal boosted appetite for riskier assets and dented some of the bullion`s allure. Spot gold edged 0.1% lower to $1,550.96 per ounce by 0118 GMT. For the week, prices have declined 0.7% so far, it`s lowest since the week ended November 8. US gold futures was flat at $1,550.80.

Asian equities rose on the back of global stocks and Wall Street scaling new records, on encouraging U.S. economic data and strong corporate earnings. Data from the United States showed retail sales rose for a third straight month in December and the number of Americans filing claims for unemployment benefits dropped for a fifth straight week last week.

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A gauge of manufacturing activity in the US Mid-Atlantic region rebounded in January to its highest in eight months. Investors are now awaiting Chinese economic data, where China is expected to post that economic growth slowed to its weakest in nearly three decades in 2019 amid a bruising trade war with the United States.

Meanwhile, from Huawei to the South China Sea, deep political rifts between Beijing and Washington are set to persist, despite a trade relations breakthrough, as the U.S. pushes back against an increasingly powerful and assertive China. Holdings of the world`s largest gold-backed exchange-traded fund SPDR Gold Trust rose 0.13% to 879.49 tonnes on Thursday. Canadian miner Barrick Gold Corp`s fourth-quarter gold production estimates came above analysts` expectations on Thursday, as its Nevada Gold Mines joint venture with Newmont Corp yielded more of the precious metal.

Palladium advanced 0.4% to $2,321.67 an ounce after hitting a record peak of $2,395.13 on Thursday and was set for its highest weekly gain since January 2017. Silver fell 0.2% to $17.91 per ounce, while platinum rose 0.3% to $1,007.52, after hitting its highest since February 2017 at $1,041.05 in the previous session.