(Updates prices)
* Gold up 2% so far this week; eyes best week in three
* Palladium faces seventh straight weekly loss
* U.S. retail sales data due at 1230 GMT
* U.S. economy will not regain lost ground in H2 2020 -survey
By Brijesh Patel
May 15 (Reuters) - Gold prices gained for a fourth straight session on Friday, hitting a more than three-week high as rising U.S.-China trade tensions added to fears about the global economy already reeling from the coronavirus pandemic.
Spot gold XAU= was up 0.2% at $1,732.63 per ounce at 1205 GMT, after hitting its highest since April 23. Bullion has risen nearly 2% so far this week. U.S. gold futures GCcv1 were steady at $1,740.20.
"Gold has been consolidating for weeks and finally broke free yesterday, the momentum from that move could be sustaining the rally," OANDA analyst Craig Erlam said.
"When something has been consolidating for so long, the breakout can be quite explosive as stops are triggered and longs initiated. I feel it may be a combination of the (U.S.) jobless claims catalyst and technical factors here."
Data on Thursday showed 2.98 million Americans filed for state unemployment benefits last week.
A Reuters survey showed an already dismal near-term U.S. economic outlook had darkened further. While a recovery is still forecast in the second half of the year, it won't come close to regaining the ground lost this year. focus now shifts to U.S. retail sales data due at 1230 GMT that will reflect the impact of stay-at-home orders on consumers in April.
The pandemic has battered global growth and prompted central banks and governments to roll out massive stimulus measures. tends to benefit from widespread stimulus from central banks because it is widely viewed as a hedge against inflation and currency debasement.
SPDR Gold Trust GLD holdings, the world's largest gold-backed exchange-traded fund, jumped 1.2% to 1,104.72 tonnes on Thursday - its highest in more than seven years. GOL/ETF
Meanwhile, U.S. President Donald Trump on Thursday said the pandemic had cast a pall over his January trade deal with China, and suggested he could even cut ties with Beijing. background noise for the trade war continues ... Also, oil is going up today which is sort of helping the underlying inflation momentum for gold," said Stephen Innes, chief market strategist at financial services firm AxiCorp. O/R
Elsewhere, palladium XPD= climbed 0.9% to $1,817.56 an ounce, but was on track to post its seventh straight weekly drop.
Platinum XPT= edged 0.1% higher to $768.58 per ounce. Silver XAG= jumped 2.2% to $16.24 an ounce and was set to mark its biggest weekly gain in five.