LONDON: Gold prices inched higher on Tuesday as the dollar eased following news that China would retaliate against a new round of US tariffs on its goods.
US President Donald Trump said he was imposing 10 per cent tariffs on about $200 billion worth of imports from China, and threatened duties on about $267bn more if China retaliated against the US action.
Spot gold was 0.1pc higher at $1,201.93 an ounce by 1255GMT in choppy trade. US gold futures were steady at $1,205.20 an ounce.
“Gold is reflecting the choppiness that we are seeing in the dollar,” said FOREX.com analyst Fawad Razaqzada, adding that the lack of direction in the dollar was reflected in narrow gold trading ranges.
Gold prices were “hovering below massive resistance between $1,205-$1,215 range”, Razaqzada said, pointing out that gold was still in a bearish trend.
Gold prices have declined more than 12pc from April, hurt by the intensifying trade dispute between the United States and China and as rising US interest rates diminished demand for non-interest-bearing bullion.
Spot silver rose 0.4pc to $14.17 an ounce. Platinum rose 1.8pc to $810.80, while palladium was up 1.2pc to its highest since mid-June at $995.80 ounce.
Published in Dawn, September 19th, 2018
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