Gold up as trade dents dollar

Gold prices rose slightly yesterday, setting the market on course for a fifth week of gains, as the dollar retreated amid expectations of a thaw in US-China trade tensions. Investors were awaiting US jobs data for fresh clues on the economy. Spot gold was up 0.2 percent at $1,235.53 per ounce by 1207 GMT.

US gold futures were down 0.1pc at $1,237.30 per ounce. World share markets roared higher, while the dollar eased, as hopes built that the United States and China were starting to repair their badly damaged trade relations. “Markets are reacting positively to the news of (US President Donald) Trump seeking a deal with China, also because this is pulling down the U.S. dollar, which is a good factor for gold,” ActivTrades chief analyst Carlo Alberto De Casa said.

Gold prices jumped about 1.5 percent in the previous session, as the dollar retreated sharply from a 16-month high hit on Wednesday. Among other precious metals, platinum climbed 1pc to $865.40 per ounce, having touched its highest since June 27 at $867.30 earlier in the session. The metal was up about 4 percent for the week so far. Palladium rose 1.7pc to $1,112.40 per ounce and silver was up 0.5pc at $14.81 per ounce.