LONDON: Gold prices inched up on Thursday, having hit a one-week low earlier in the session as investors opted for dollars and US government bonds as a hedge against trade tensions between the United States and China.

Spot gold was up 0.2 per cent at $1,281.58 per ounce by 1307 GMT, having fallen to its lowest level since May 23 at $1,274.44 earlier in the session. US gold futures edged 0.1pc lower to $1,285.70 an ounce.

“A strong US dollar is weighing on the gold prices. The dollar has been strong lately; it seems like investors prefer to hold US debts and other low risk serving bonds as opposed to gold,” SP Angel analyst Sergey Raevskiy said.

“However, gold is still very supported around these prices. You would expect gold to be higher in this environment, but for now, it looks like the investors’ focus is elsewhere.” Gold turned slightly positive after data showed US first-quarter gross domestic product (GDP) increased at a 3.1pc annualised rate, slightly down from the 3.2pc pace estimated last month.

Among other precious metals, silver rose 0.3pc to $14.46 per ounce. The metal had dropped to $14.25 on Tuesday, its lowest level since early December. Platinum was steady at $791.16 per ounce, after earlier falling to its lowest since February 15 at $785. Palladium slipped 0.1pc to $1,347.85 per ounce.

Published in Dawn, May 31st, 2019