Gold Prices Trade Higher as Dollar Softens on Easing Trade Concerns

Gold prices traded higher on ThursdayGold prices traded higher on Thursday

Investing.com – Gold prices traded higher on Thursday, after rising in the previous session, as the dollar weakened amid easing trade concerns between the U.S. and China.

for December delivery gained 0.17% to $1,210.40 per troy ounce at 1:00AM ET (05:00 GMT) on the Comex division of the New York Mercantile Exchange.

The precious metal has dropped about 11.6% from a peak in April as escalating U.S.-China trade dispute and rising U.S. interest rates were cited as catalysts for the selling in gold prices.

Meanwhile, the that tracks the greenback against a basket of other currencies inched down 0.01% to 94.11.

Reports that the tariffs imposed by the U.S. and China on each other’s goods were set at lower levels than expected were cited as headwind for the dollar prices, which is widely seen as safe-haven assets.

The dollar was also under pressure after a report said that the U.S. and Canada are unlikely to reach an agreement on NAFTA this week.

“The risk (sentiment) is sort of flattening, but that’s also taking wind out of the safe-haven appeal of the U.S. dollar (helping gold) … For gold to break $1,210, we need to see the dollar weakening against the emerging market currencies as well as the euro,” said Stephen Innes, APAC trading head, OANDA.

“However, there is not much of a safe-haven appeal (for gold) as the market is not packing in a lot of punch to trade war.”

Looking ahead, markets would be paying close attention to next week’s Federal Reserve meeting. The U.S. central bank is widely expected to hike rates and discuss paths for future rate hikes.

Higher rates dent demand for non-interest yielding gold and in turn boost the dollar in which it is priced.

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Source: Investing.com