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Gold heads for best week in 3 months on U.S.-China woes

Credit: REUTERS/MICHAEL DALDER

Gold held steady on Friday en route to its best week in more than three months, driven by an escalation in U.S.-China tensions, with investors also looking for a hedge against possible inflation as hopes for more stimulus measures grow.

July 24 (Reuters) - Gold held steady on Friday en route to its best week in more than three months, driven by an escalation in U.S.-China tensions, with investors also looking for a hedge against possible inflation as hopes for more stimulus measures grow.

FUNDAMENTALS

* Spot gold was little changed at $1,885.62 per ounce by 0041 GMT, after hitting its highest since September 2011 at $1,897.16 on Thursday. U.S. gold futures eased 0.3% to $1,884.60.

* Prices have risen more then 4% so far this week, their biggest weekly percentage gain since April 10.

* China said the U.S. move to close its Houston consulate this week had "severely harmed" relations and warned it "must" retaliate, without providing details of what it would do.

* Gold is often used as a safe store of value during times of political and financial uncertainty.

* U.S. Senate Republicans will unveil their proposal for a fresh round of coronavirus aid next week, including more direct payments to Americans, Senate Majority Leader Mitch McConnell said.

* Coronavirus cases continue to rise in the United States, while more than 15.35 million people have been reported to be infected by the virus globally.

* The number of Americans filing for unemployment benefits unexpectedly rose last week for the first time in nearly four months, data showed on Thursday.

* Asian markets are set to open mostly lower as China vowed to retaliate against a U.S. order to close one of its consulates. [MKTS/GLOB]

* Silver fell 0.3% to $22.66 per ounce, while platinum rose 0.9% to $913.86 and palladium was steady at $2,125.89.

DATA/EVENTS (GMT) 0800 EU

Markit Mfg, Serv, Comp Flash PMIs July 1345 US

Markit Mfg, Serv, Comp Flash PMIs July 1400 US

New Home sales-Units

June

(Reporting by Brijesh Patel in Bengaluru; Editing by Krishna Chandra Eluri) ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net)) Keywords: GLOBAL PRECIOUS/

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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