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Gold prices fell on Friday as a White House official’s comments rekindled hopes of a US-China trade deal and boosted appetite for riskier assets, but bullion was still on course for a weekly gain.

Spot gold was down 0,5 percent at $1 464,40 per ounce at 1240 GMT, though up about 0.4 percent on the week.

US gold futures were down 0,6 percent at $1 464,70 per ounce.

White House economic adviser Larry Kudlow said late on Thursday that the United States and China were getting close to a deal and the “mood music is pretty good”.

Hopes of a trade deal between Washington and Beijing sent world stock markets and other risk assets higher.

Gold’s trajectory is still very much hinged on the outcome of the ongoing trade talks and any decline in gold will be contained until there is official confirmation that a deal is signed, Tan said.

Gold prices have gained more than 14 percent this year as the trade spat between the world’s biggest economies roiled financial markets, stoking fears of a global economic slowdown and prompting major central banks to reduce interest rates.

Market sentiment soured earlier this week after US President Donald Trump on Tuesday said he could impose substantial new tariffs on China if no deal was reached. — Reuters.