LONDON: Gold gained on Monday as the dollar eased on optimism that the United States and China are nearing a deal to end their trade war, while palladium set another record high on deepening supply constraints.

Spot gold rose 0.2 per cent to $1,329.95 an ounce at 1253 GMT and US gold futures were down 0.1pc at $1,332.20 an ounce.

Capping gains were higher share prices, which rose on signs of progress in the US-China trade conflict.

US President Donald Trump on Sunday said he would delay an increase in US tariffs on Chinese goods thanks to “productive” trade talks and that he and Chinese President Xi Jinping would meet to seal a deal if progress continued.

“The risk sentiment in the equity market is pretty positive against the backdrop of the US-China trade talk news and some support from the Chinese government, which is negative for gold,” said Julius Baer analyst Carsten Menke.

Platinum, which briefly touched its highest since Nov. 20 at $851, was up 0.6pc at $845.50.

The platinum group metals (PGM) continued to rise as supply risks increased after South Africa’s Association of Mineworkers and Construction Union (AMCU) planned to extend a strike from Sibanye Gold to other producers in the country, ANZ analysts said in a research note.

Published in Dawn, February 26th, 2019