Gold jumped to a two-week high on Friday after weak U.S. economic data boosted expectations the U.S. Federal Reserve would hold pat on monetary tightening, while palladium matched an all-time high on a prolonged deficit.
Spot gold was up 0.7 percent at $1,321.31 an ounce at 2:21 p.m. EST (1921 GMT), having touched its highest level since Feb. 1 at $1,321.88.
U.S. gold futures settled up 0.6 percent at $1,322.10.
While gold is on track for a small weekly gain, it was rangebound for most of the week, with gains on Friday stemmed by a rebound in stocks.
"Gold (price action) is like watching oil evaporate. The market is continually bearish at lows and bullish at highs with actual breaks infrequent," said Tai Wong, head of base and precious metals derivatives trading at BMO.
"The end of the (Fed) tightening cycle now looms which improves the overall backdrop for gold significantly. With the Fed on hold, there is less pressure for the rest of the globe to keep pace."
The metal gained 0.5 percent in the previous session after weak U.S. retail sales data added to disquiet about slowing growth, which could prompt the Fed to hold interest rates steady for a while.
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