Mubasher: Gold prices dipped on Friday as renewed hopes about progress in the trade negotiations between the US and China fuelled risk appetite.
By 8:49 am GMT, US gold futures fell 0.36% to $1,287.70 per ounce, while spot gold declined 0.27% to $1,288.61 per ounce.
“The risk perception has for some degree stabilised and that took away some support for gold,” Hong Kong-based UBS Wealth Management commodities and Asia and Pacific forex head Dominic Schnider told Thomson Reuters.
The extent of economic slowdown cannot currently be measured, which buoy the precious metal, Schnider said.
Asian equities rallied across the board on Friday after the Wall Street Journal (WSJ) reported that US Treasury Secretary Steven Mnuchin had weighed relaxing tariffs levied on Chinese imports, boosting market sentiment.
Nevertheless, spot gold was heading for its fifth consecutive weekly gain, driven by expectations that the US Federal Reserve would place brakes on interest rate hikes this year on concerns about economy and uncertainties about Brexit.
“[Gold] does need a trigger to spark it upwards, either in the way of a weaker dollar, renewed stumbles in US equities or clearer indications of slowing US growth,” INTL FCStone analyst Edward Meir said in a note.
The US dollar index, which traces the greenback against six major currencies, edged up 0.04% 96.1070.