Gold prices rose on Friday and were on tack for a seventh consecutive weekly gain as worries over a potential global trade war intensified after U.S. President Donald Trump's push for reciprocal tariffs.

Spot gold was up 0.3% at $2,936.79 an ounce by 0828 GMT, taking its weekly advance to 2.7%. Bullion hit a record peak of $2,942.70 on Tuesday.

U.S. gold futures were up 0.5% at $2,961.40.

Uncertainty over the Trump administration's policies on trade, tariffs and broader foreign policy continues to support bullion, said Nicholas Frappell, global head of institutional markets at ABC Refinery.

On Thursday Trump directed his economic team to formulate plans for reciprocal tariffs on every country that imposes taxes on U.S. imports. This potentially inflationary move could drive further safe-haven demand for gold, a traditional hedge against rising prices and geopolitical uncertainty.

Meanwhile, Thursday's U.S. PPI report eased some concerns about inflation in the world's largest economy after a hotter than expected consumer prices report earlier in the week.

Traders expect that the Federal Reserve will not cut interest rates until September because of concerns over high inflation while a drop in jobless claims signalled a resilient labour market.

Gold's path of least resistance is higher, with the $3,000 an ounce in view, said Ilya Spivak at investment analysis streaming site Tastylive.

On the physical side, gold demand weakened in India as record prices curbed retail buying and forced dealers to offer discounts. Chinese demand has also been muted since the Lunar New Year holidays.

In other precious metals, spot silver gained 2.5% to $33.18 an ounce, platinum added 1.4% to $1,008.80 and palladium firmed by 0.7% to $1,001.36.

All three metals were on track for weekly gains.

Source: Reuters