BENGALURU (Reuters) – Gold prices inched aloft on Monday after descending to a 5-1/2-month low in a prior session, as a trade brawl between a world’s dual largest economies triggered safe-haven buying, though a clever dollar put a top on a upside.
Spot bullion edged adult 0.1 percent to $1,279.70 per unit by 0255 GMT. The yellow steel overwhelmed a weakest given late Dec during $1,275.01 an unit on Friday.
U.S. bullion futures for Aug smoothness were adult 0.3 percent during $1,282.10 per ounce.
“The U.S. dollar strength is weighing on financier view during a impulse rather than any concerns about weaker mercantile expansion due to a trade tensions,” pronounced ANZ researcher Daniel Hynes.
The dollar index, that measures a greenback opposite a basket of 6 vital currencies, edged adult 0.1 percent to 94.889, hovering tighten to a seven-month high overwhelmed in a prior session.
U.S. President Donald Trump on Friday pronounced he was pulling forward with large tariffs on $50 billion of Chinese imports, and a smoldering trade fight between a world’s dual largest economies showed signs of igniting as Beijing immediately vowed to respond in kind.
Gold is mostly used by investors as a sidestep opposite domestic and financial uncertainty.
“Risk ardour will approaching stay diseased into a trade day forward following strong trade concerns,” OCBC pronounced in a note.
Meanwhile, Asian shares retreated on Monday after Trump cranked adult a trade tensions with China.
South Korea and a United States are approaching to announce a cessation of “large-scale” troops drills this week, with a sustenance that they would restart if North Korea unsuccessful to keep a guarantee to denuclearise, news group Yonhap pronounced on Sunday.
Hedge supports and income managers lifted their net prolonged position in COMEX bullion by 6,506 contracts to 64,572 contracts in a week to Jun 12, U.S. information showed on Friday. This was a top net prolonged position in bullion given late April.
Speculators also lifted their net prolonged position in china to a strongest in 6-1/2 months.
Silver fell 0.3 percent to $16.46 per ounce.
Platinum was down 0.1 percent during $886.30 an ounce. It overwhelmed a four-week low on in a prior session.
Palladium was 0.1 percent reduce during $985.75 an ounce.
Reporting by Karen Rodrigues in Bengaluru; Editing by Joseph Radford and Richard Pullin
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