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Gold inches higher, notches 0.8% weekly gain

This article has been updated to correct the closing price of December gold to $1,622.80 an ounce.

SAN FRANCISCO (MarketWatch) -- Gold futures ended higher Friday as the dollar lost some of its safe-haven luster and investors kept hopes of additional stimulus alive.

Other futures for metals more closely related to industrial uses moved lower, however, feeling the pinch of negative July trade data from China.

Gold for December delivery (GCZ2) rose $2.60, or 0.2%, in quiet trading, settling at $1,622.80 an ounce on the Comex division of the New York Mercantile Exchange.

The metal gained 0.8% on the week, punctuated by similarly modest gains on the hopes of more stimulus -- and the accompanying fears of currency debasement, which boosts gold's role as currency alternative.

"There's a lot of money on the sidelines wanting to see if there's Fed action next month," said Matt Zeman, senior strategist with Kingsview Financial in Chicago. The U.S. central bank's policy-setting Federal Open Market Committee is scheduled to meet Sept. 12-13.

With the dollar turning weaker, gold held a good technical position and the close above $1,620 an ounce could pave the way for more gains in the short term, Zeman said.

"Technically, gold is poised to move higher," he added. "The next big hurdle for gold to clear is $1,640-$1,645 an ounce."

Gold has held on to the $1,600-an-ounce line on hopes that central banks across the globe would soon announce additional stimulus measures.

The weaker-than-expected Chinese trade data hemmed in the dollar. The ICE dollar index (DXY) , which measures the performance of the U.S. unit to a basket of six currencies, dipped to 82.549 from 82.646 late Thursday. Read more about currencies.

A weaker dollar is a positive for gold and other dollar-denominated commodities, as it makes them less expensive to holders of other currencies. For gold, it also underscores the metal's roles as an alternative to currencies.

Weakness in the dollar notwithstanding, China's data kept the broader suite of metals futures under pressure on Friday. Most metals, however, relied on previous sessions's gains to post weekly gains.

The Chinese trade surplus narrowed in July, surprising investors, with the No. 2 global economy's exports barely higher and imports increasing at a smaller rate.

The report comes after worrying data on industrial output and retail sales, and added to concerns about business conditions for the top commodity consumer.

Copper for September delivery (HGU2) retreated 3 cents, or 1%, to settle at $3.39 a pound. Copper rose 0.6% on the week.

September silver (SIU2) went back to the red after a brief rebound, and ended 4 cents lower, or 0.1%, at $28.06 an ounce. On the week, however, silver gained 0.9%.

Platinum and palladium followed suit, with October platinum (PLV2) off $12.90, or 0.9%, to $1,399.90 an ounce. September palladium (PAU2) declined $4.50, or 0.8%, to $582.20 an ounce.

Platinum lost 1% on the week, while palladium rose 0.7%.