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Gold Holds Above $1500 On Trade Worries

Gold prices held steady on Friday and remained on track to post their biggest weekly gain in over three years as trade tensions between the United States and China further escalated.

Spot gold edged up 0.1 percent to $1,502.89 per ounce, after surpassing $1,500 for the first time since April 2013 earlier this week. Prices have risen by more than 4 percent so far this week. U.S. gold futures were up 0.3 percent at $1,514.45 an ounce.

The U.S.-China trade spat shows every sign of worsening, with a Bloomberg report saying the White House is holding off on a decision about licenses for U.S. companies to restart business with Huawei Technologies Co.

This development came a day after Chinese companies halted purchases of U.S. agricultural products.

Political uncertainty in Italy, Brexit worries and a dovish policy stance by central banks around the globe are also providing additional support to gold prices.

Investors keep a close eye on political developments in Italy after Interior Minister Matteo Salvini of the right-wing League party called for fresh general elections.

Elsewhere, British finance minister Sajid Javid announced he would delay a long-planned review of public spending due this year, fueling speculation that Prime Minister Boris Johnson is preparing for a snap election in the days after Brexit.

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