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Gold prices rise 3pc

August 17, 2018

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LONDON: Gold prices bounced from 19-month lows on Thursday as the dollar slipped on news that China and the United States will hold trade talks this month, although sentiment remained negative.

Spot gold was up 0.3 per cent at $1,177.68 an ounce at 1335GMT from an earlier low of $1,159.96, its weakest since January last year. US gold futures were unchanged at $1,185 an ounce.

Gold prices have tumbled more than 10pc since their April peak above $1,365 an ounce.

The meeting between a Chinese delegation and US representatives offers hope for progress in resolving the trade conflict that has unnerved financial and commodity markets in recent weeks.

Political and economic uncertainty have seen investors opt for the safety of US Treasuries and the US currency, which when it rises makes dollar-denominated gold more expensive for holders of other currencies, potentially subduing demand.

“I’m viewing the news of the talks as arresting the slide, not reversing it. The talks are low level, we are not out of the woods yet, sentiment is still bearish,” said Ole Hanson, head of commodity strategy at Saxo Bank.

Silver, platinum and palladium, which have industrial applications, also rallied.

Silver gained 1.5pc to $14.63 an ounce after earlier hitting the lowest since February 2016 at $14.30.

Palladium added 4.5pc to $880.2 an ounce, having hit a more than 13-month low at $832 earlier.

Published in Dawn, August 17th, 2018