PRECIOUSFears of trade war push gold prices higwar goldherU.S. President Donald Trumps decision on Thursday to placetariffs on imports of aluminium and steel raised fears ofretaliation by other nations and knocked the dollar from asixweek high, dollardenominated gold cheaper for usersof other currencies. *nLNQJAC

Spot gold XAU was up . percent at ,. an ounce at GMT. U.S. gold futures GCcv were . percent higher at,. an ounce.

Palladium XPD was up . percent at . an ounce butdown . percent this week after suffering its biggest ll inmore than a year on Thursday.

Also positive for gold was its ability to hold above itstechnically important day moving average price at ,,also a key psychological level for investors.

In other precious metals, silver XAG was down . percentat . an ounce after touching a twomonth low on Thursday.It was . percent lower for the week.

The risk of trade wars which could impact economic growthand raise uncertainty plays into the hands of gold, Saxo Bankanalyst Ole Hansen said.

Nearterm technical resistance was at the day movingaverage at ,., analysts at ScotiaMocatta said.

Supporting bullion prices was an increase in holdings ofgold in exchangetraded funds tracked by Reuters of nearly tonnes, or percent, since midFebruary. HLDTOTALLXAU

Evidently some investors viewed the low price level as abuying opportunity, analysts at Commerzbank wrote.

But the threat of a trade war had overpowered fears ofinterest rate increases, Hansen said.

LONDON, March Reuters Gold prices rose on Friday asthe threat of a global trade war pushed shares and the dollarlower and spurred demand for assets such as bullion that areseen as safer investments.

* Gold still down . percent this week Updates throughout, adds LONDON dateline

If a trade war becomes a reality it could push inflation upand growth down and that should ease the aggressiveness of theFed. Thats why it has become the focus of the gold market,he said.

It touched ,., the lowest since Jan. , on Thursday,pushed down by expectations that the U.S. Federal Reserve willraise interest rates more aggressively than previously thought. m*nLNQJK

Additional reporting by Eileen Soreng in Bengaluru; Editing byDale Hudson Peter.; ;

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of NASDAQ, Inc.

Gold was, however, down . percent this week and on trackfor a second consecutive weekly loss.

Platinum XPT was . percent lower at . an ounce,near twomonth lows and down . percent this week.

Higher interest rates are negative for gold because theyraise bond yields, reducing the attractiveness of nonyieldinggold, and tend to boost the dollar.

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