Feb 7 (Reuters) - Gold prices rose on Friday and were on track for a sixth consecutive week of gains as escalating trade tensions between the U.S. and China prompted investors to seek refuge in the safe-haven asset.
Spot gold gained 0.5% to $2,871.59 per ounce as of 11:06 a.m. ET (1606 GMT), up more than 2% this week, after hitting a record high of $2,886.62 earlier in the session.
U.S. gold futures rose 0.7% to $2,897.50.
"Central focus of the gold market continues to be the uncertainty in regard to the Trump tariff policies," said David Meger, director of metals trading at High Ridge Futures.
U.S. President Donald Trump this week kick-started a trade war as he followed through on his threat to impose new duties on China, though he granted Mexico and Canada a one-month reprieve.
Gold is often used as a safe investment during times of political and financial uncertainty.
The gold market also seems to have been buoyed by both continued growth in the People's Bank of China's gold holdings and a new Chinese program allowing insurance funds to invest in gold, said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Meanwhile, a Labor Department report showed the U.S. economy added 143,000 jobs in January, compared with a rise of 170,000 expected by economists, whereas the unemployment rate stood at 4%, compared with expectations of 4.1%.
The U.S. job growth slowed in January, but a 4% unemployment rate still makes a spring cut from the Fed look unlikely.
Wage growth and declining job creation are challenging the Federal Reserve's ability to adjust rates, shaping a uniquely complicated yet potentially advantageous situation, said Bart Melek, head of commodity strategies at TD Securities.
A strong economy with full employment and easing inflation should allow the Fed to cut rates, but tariff uncertainties call for caution, Chicago Fed President Austan Goolsbee said.
Spot silver rose 0.1% to $32.23 per ounce and platinum was steady at $985.65. Palladium fell 0.1% to $978.15.
Silver and platinum were headed for weekly gains, while palladium was down 3.7% for the week.
Reporting by Anmol Choubey in Bengaluru Editing by Nick Zieminski and Kevin Liffey
