BENGALURU: Gold rose on Tuesday, supported by a slight pause in the dollar’s rally as the United States and China continue talks aimed at ending their trade conflict.

Spot gold was up 0.4 per cent at $1,313.81 an ounce at 1307 GMT after falling 0.4pc in the previous session.

US gold futures gained 0.4pc to $1,317.50.

“The sentiment this morning is a little more constructive towards the deal,” said ING analyst Warren Patterson.

“The (gold) price direction really hinges on how these trade talks play out. A positive outcome at trade talks could weigh on the dollar and that is constructive for gold prices.”

The dollar steadied after climbing to its highest level since mid-December, having been the preferred refuge for investors concerned about the trade row.

US Trade Representative Robert Lighthizer arrived in Beijing on Tuesday ahead of high-level trade talks to hammer out a deal ahead of a March 1 deadline.

Also on investors’ radar is a long-drawn logjam in Washington over funding for a border wall with Mexico, as well as the continuing uncertainties surrounding Britain’s planned departure from the European Union.

US congressional negotiators on Monday reached a tentative deal to try to avert another partial government shutdown on Saturday.

Investors are worried about the economic impact of a US government shutdown when global growth is already lean.

Among other metals, palladium was 0.6pc higher at $1,394 an ounce, while silver gained 0.5pc to $15.78.

Platinum firmed 0.2pc to $783.31 an ounce, having touched its lowest since Jan. 2 at $779.50 in the previous session.

Published in Dawn, February 13th, 2019