Mubasher: Gold prices stood firm earlier on Thursday, as seething trade tensions lent support to the dollar, while investors looked for a direction after the minutes of the Federal Reserve meeting indicated that rates would remain unchanged, Reuters reported.
As of 7:25 am GMT, spot gold was almost unchanged at $1,274.03 per ounce, while US gold futures stabilised at $1,274.20 per ounce.
By 10:04 am GMT, spot gold rose by 0.28% to $1,276.86 per ounce, while US gold futures ticked up by 0.13% to $1,275.80 per ounce.
“The short-term effect of the US-China trade conflict is driving the US dollar index higher in general and that doesn’t help gold,” ABC Bullion global general manager Nicholas Frappell was quoted by Reuters.
The US administration was reportedly weighing blacklisting Chinese video surveillance company Hikvision, citing concerns over the company’s contribution to China’s repressing the Uighur minority.
At 10:05 am GMT, the US dollar index rose by 0.17%to 98.21, close to its highest level in one month reached earlier in the week.
Meanwhile, minutes from the Fed’s latest meeting indicated an agreement among policymakers that their current “wait-and-see” monetary approach will remain “for some time.” This mirrors a little need to shift rates in either direction.