Gold recovered some heavy losses sustained earlier this week, as markets were once again rattled by uncertainties around US President Donald Trump's global tariffs agenda and the strength of the US economy.

The precious metal traded near $3,314 an ounce, following a gain of nearly 1% on Thursday after a federal appeals court offered Trump a temporary reprieve from a ruling threatening to throw out the bulk of his tariff agenda. A weakening dollar also helped, driven by growing fiscal risks and renewed political pressure on the Federal Reserve to lower interest rates.

Disappointing data on Thursday showed that the US economy shrank at the start of the year, due to weaker consumer spending and an even bigger impact from the trade war than initially reported.

Meanwhile, tensions with China resurfaced this week after the administration announced it would start revoking Chinese student visas, while also introducing new restrictions on the sales of chip design software — prompting an angry rebuke from Beijing.

All that is likely to reinforce the haven appeal of gold, which Goldman Sachs Group Inc. said this week would remain a hedge against inflation in long-term portfolios along with crude.

Still, bullion was on track for a 1.2% weekly loss as easing tensions with some trade partners and positive sentiment in the wider markets had weighed earlier in the week.

Spot gold was down 0.1% to $3,314.14 an ounce as of 8:14 a.m. in Singapore. The Bloomberg Dollar Spot Index extended declines, after fluctuating in the previous session. Silver, palladium and platinum all edged lower.

Source: Bloomberg