LONDON: Gold prices hit their highest in more than three weeks on Wednesday as renewed concern over the US-China trade dispute and its potential impact on global growth curbed investors’ appetite for risk, spurring some demand for safe-haven assets.

Spot gold rose 0.4 per cent to $1,289.09 per ounce as of 1207 GMT, having hit its highest since April 15 at $1,290.42 earlier in the session.

US gold futures gained 0.4pc to $1,290.30.

Some in the market expect the gold price rally to be limited, with the weakness in equity markets seen as temporary.

“So far Trump’s tariff threat has had much bigger impact on the stock markets than precious metals. While gold is drawing support from the scenario, investors are not accumulating the metal,” said Carlo Alberto De Casa, chief analyst with ActivTrades.

After stabilising around $1,280, gold is seeing some upside momentum in the near term, analysts at bullion trader Wing Fung said in a research note, adding resistance at $1,300 would still be hard to break.

Despite weak buying in biggest bullion consumer China so far this year, analysts and traders expect resilient Indian buying to support physical demand.Silver was steady at $14.90 an ounce, while platinum eased 0.2pc to $866.45.

Palladium fell 0.7pc to $1,318.41 an ounce.

Published in Dawn, May 9th, 2019