Gold price rises during the North American session on Friday amid an escalation of the trade war between the US and China. This, the US government shutdown and expectation for further easing by the Federal Reserve (Fed) keep the yellow metal bid. XAU/USD trades at $3,997, up 0.60%, at the time of writing.
Bullion's boosted by escalating tariff threats and prolonged Washington deadlock reigniting risk aversion
Risk aversion is the name of the game after US President Donald Trump warned of possible fresh duties on China, as the latter threatens to impose export controls on rare earths. Trump added that there is no reason to meet with China's President Xi Jinping in two weeks in South Korea as planned.
On Thursday, the yellow metal posted losses of 1.59% as traders booked profits, along with the ceasefire between Israel and Gaza.
The US government shutdown extends to the tenth straight day and the chances of a reopening in the near term remain far.
Data-wise, the University of Michigan (UoM) revealed that Consumer Sentiment was steady in October, as households appear to shrug off the partial shutdown of the government.
Next week, the US economic docket is expected to release the Consumer Price Index (CPI) for September. Nevertheless, the US Bureau of Labor Statistics (BLS) revealed that it will be announced on Friday at 8:30 AM ET.
Source: fxstreet
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