Gold rises to one-week peak amid trade anxiety
Gold bars and coins
Goldprices scaledone-weekhighs on Thursday, holding ground above $1,500 an ounce, as investors flocked to the safety of bullion following contradictory reports about US-Chinatradetalks.
Spotgoldgained 0.1 per centto $1,506.78 per ounce as of 0724 GMT, having notched apeakof $1,516.77 early in the session, its highest since October3. USgoldfutures dropped 0.1 per centto $1,511.80.
"Goldis holding strong above $1,500 because of healthy inflows by ETFs (exchange-traded funds). If the US-Chinatradetalks fail once again,goldprices could rally," said Jigar Trivedi, a commodities analyst at Mumbai-based Anand Rathi Shares & Stock Brokers.
"Prices are not falling, because of strong investment demand and fundamental factors. $1,490 is the current support, and if prices drop below this, there could be an extended fall till $1,460."
A report from the New York Times said Washington would soon issue licences permitting some USfirms to supply non-sensitive goods to China's Huawei Technologies.
A report by Bloomberg, saying the White House was looking at rolling out a currency pact with China, raised hopes of a partial deal and helped to lift risk assets.
The South China Morning Post had reported earlier in the session that a Chinese delegation was planning to leave Washington after just a day of minister-level meetings, instead of Friday as planned, sending Asian stocks toppling. However, risk sentiment has recovered slightly since.
Goldis often used by investors as a hedge against political and financial uncertainty.
"GoldETF holdings are at three-year highs and lots of central banks are also buying, which is keeping prices supported," said Argonaut Securities analyst Helen Lau, adding that some volatility could be expected in thegoldmarket.
Indicative of investor interest, holdings of the SPDRGoldTrust, the world's largestgold-backed exchange-traded fund, have been at their highest since November 2016.
Spotgoldlooks neutral in a range of $1,488-$1,514 per ounce, and an escape could suggest a direction, Reuters technical analyst Wang Tao said.
Investors also sought further cues on the USFederal Reserve's trajectory on monetary easing later in the month.
"Globaltradeuncertainties along with subdued global growth will remain supportive towards safe-haven assets in the current term," Phillip Futures analyst Benjamin Lu said in a note.
Silver rose 0.1 per centto $17.72 per ounce, palladium inched 0.2 per centhigher to $1,684.91 and platinum was little changed at $891.49 an ounce.