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Gold rises amid US-Sino trade uncertainty

Gold rises amid US-Sino trade uncertainty

Mubasher: Gold prices on Friday were on course to post their best month in three years, as markets were gripped by uncertainty over whether the talks between the US and China would eventuate in a resolution to a year-long trade conflict, Reuters reported.

By 8:24 am, spot gold rose by 0.28% to $1,413.74 per ounce, while US gold futures climbed by 0.35% to $1,416.90 per ounce.

Gold climbed by around 8.4% so far this month, heading for its biggest monthly gain since June 2016.

Moreover, it was set to post a 1.2% increase this week, marking its sixth straight week of gains.

Leaders of the world’s 20 biggest economies are descending on Osaka, Japan, to attend a summit on Friday and Saturday, but focus turned to a much-anticipated meeting on the sidelines between US President Donald Trump and Chinese President Xi Jinping.

A Wall Street Journal (WSJ) report on Thursday said that President Xi is set to present his US counterpart with a set of conditions Washington is expected to meet before Beijing would be ready to resolve their trade row.

However, President Trump was said not to have agreed to no preconditions for his meeting with the Chinese president, and he maintained his threat to slap Chinese goods with new tariffs, White House economic adviser Larry Kudlow was cited by Reuters.

“On going tensions around the trade talks between the US and China helped gold with some safe-haven buying prior to the G20 summit meeting on Saturday,” Australia and New Zealand (ANZ) bank analyst Daniel Hynes was quoted by the news agency.

Xi’s preconditions came as a reminder for markets that the resumption of bilateral trade talks would not come easily, Hynes said.

Moreover, the yellow metal was buoyed by a weakness of the US dollar, retreating from an almost one-week peak in the prior session.

At 8:29 am GMT, the dollar index, which gauges the US currency against six major peers, inched down by 0.09% to 96.11.