Assalamu Alaykum, "God is beautuful and loves beauty". Should this saying be interpreted literally or metaphorically? Thank you

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.

This narration refers to the literal meaning, it is for this reason that the scholars interpreted the narration that Allaah is beautiful in His Entity, His Attributes, and His Actions. Ibn ‘Abbaas narrated that the Prophet said: “My Lord came to me tonight in the most beautiful form, he (the narrator) said ‘I believe he refers to a dream’.” [Ahmad and At-Tirmithi]

Allaah has the most perfect features, does the best actions, ordains us to fulfill so little obligations, and helps us in achieving them, and He rewards us and thanks us for doing them.

For more benefit, please refer to Fatwa 88618. 

Allaah Knows best.