LONDON: Gold prices rose to their highest levels in nearly two weeks on Wednesday as US Senate action on Hong Kong created a potential obstacle to a trade deal between the United States and China, denting appeal for riskier assets.

Spot gold was rose 0.2 per cent to $1,475.83 per ounce at 1139 GMT and US gold futures was up 0.1pc at $1,476.20.

Investors are also waiting for the minutes from the US Federal Reserve’s October policy meeting, due at 1900 GMT, for additional cues on the monetary policy outlook. The US central bank cut interest rates three times this year to help sustain US growth but last month signalled that there would be no further cuts unless the economy takes a turn for the worse.

“The market is pricing in one cut over the next 12 months and that will change very quickly on failure to reach a (trade) deal,” Saxo Bank’s Hansen added. Lower interest rates reduce the opportunity cost for holding non-yielding bullion.

Spot gold could rise into a range of $1,480-$1,485 an ounce, according to Reuters technical analyst Wang Tao.

Silver was flat at $17.15, platinum edged 0.1pc higher to $911.16 and palladium rose 0.2pc to $1,766.37. Palladium prices could continue to firm on supply issues, and $2,000 an ounce is a likely scenario for the autocatalyst metal next year, said Ross Norman, a London-based independent analyst. The metal hit a record high of $1,824.50 on October 30, buoyed by a sustained supply deficit.

Published in Dawn, November 21st, 2019