Reuters | Feb 12, 2019 13:25
* Platinum rebounds from over 1-month low hit in previous session
* U.S. dollar slips after rising 0.4 pct in the prev session (Adds quotes, updates prices)
By Sethuraman N R
Feb 12 (Reuters) - Gold prices edged up in late Asian trade on Tuesday as the dollar fell from multi-week highs, with bullion drawing support from global economic slowdown worries and uncertainties surrounding Sino-U.S. trade talks.
Spot gold XAU= was up 0.3 percent at $1,312 per ounce, as of 0738 GMT, after falling 0.4 percent in the previous session.
U.S. gold futures GCv1 were also mostly unchanged at $1,312.70 per ounce.
"The pull back in the U.S. dollar is driving up commodity prices including gold," said Margaret Yang, market analyst with CMC (NS:CMC) Markets, Singapore.
"The present strength in dollar is not sustainable against the backdrop of very dovish U.S. Federal Reserve. There are plenty of uncertainties for traders to worry about this week, including trade talks and Brexit debate, which should support gold prices."
New round of trade talks between China and the United States started in Beijing on Monday with world's two largest economies trying to hammer out a deal before a March 1 deadline, after which U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent. trade tensions have rattled financial markets since last year and also underpinned the dollar's safe-haven appeal.
Gold prices fell after hitting a nine-month high at $1,326.30 in late January, mostly due to dollar strength.
A stronger greenback makes dollar-denominated gold more expensive for holders of other currencies.
For the near-term, the yellow metal is expected to stay above $1,300, which is seen as critical support level in charts followed by technical traders, analysts said.
"Ongoing trade tensions and concerns about weaker global economic growth continue to provide a level of support in the gold market," ANZ analysts said in a research note.
Meanwhile, U.S. congressional negotiators said late on Monday they had reached a tentative deal on border security funding that would avert another partial government shutdown due to start on Saturday, but provided no details. are worried about the economic impact of U.S. government shutdown when global growth is already lean.
Platinum XPT= rose 0.4 percent to $786 per ounce. In the previous session, the metal had touched $784.91, its lowest since Jan. 2.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.