Gold rose over 1% on Friday as the dollar ticked lower, while the market digested recent tariff remarks from U.S. President Donald Trump ahead of a weekend meeting between the U.S. and China.

Spot gold was up 0.8% to $3,332.88 an ounce at 0919 ET(13:18 GMT) and gained nearly 3% so far this week.

Bullion, known as a hedge against geopolitical and economic uncertainties has risen more than 27% since the start of the year.

U.S. gold futures were up 1% to $3,338.10.

The U.S. dollar edged 0.3% lower, making bullion less expensive for other currency holders.

U.S. President Donald Trump said that 80% tariffs on Chinese goods "seems right" as representatives prepared for weekend talks to contain a trade war between the world's two largest economies.

Additionally, on the geopolitical front, India and Pakistan accused each other of launching new military attacks, using drones and artillery for the third day in the worst fighting between the nuclear-armed South Asian neighbours in nearly three decades.

"Obviously, the overall continued uncertainty in regards to tariffs remains probably the most significant underpinning behind gold," said David Meger, director of metals trading at High Ridge Futures.

"We're not quite as favourable towards gold as we have been over the course of the past several months. We could be moving into a period of more consolidation or retracement for a period of time."

On the physical front, Indian gold dealers offered price discounts this week amid weak demand as a weaker rupee lifted local prices to near-record highs, while buying in China picked up after a holiday.

Elsewhere, Trump's trade policies will likely lift inflation, lower growth, and raise unemployment later this year, Federal Reserve Governor Michael Barr said, leaving policymakers with a potentially tricky decision on which problem to fight.

Spot silver added 0.2% to $32.56 an ounce, platinum rose 1.1% to $986.55 and palladium climbed 0.1% to $976.68.

Source: Reuters