LONDON: Gold prices edged higher in volatile trading on Friday as investors remained cautious about the developments in the United States and China trade negotiations that helped boost equities to record highs.
US stocks hit record levels on Friday after China said first phase trade talks with US have achieved major progress and that Beijing would cancel tariffs scheduled to take effect on Sunday.
Spot gold was up 0.2 per cent at $1,472.77 per ounce by 11:05 am ET (1605 GMT) and has risen about 1pc so far this week. US gold futures were up 0.4pc at $1,477.50.
“There is still some question marks on whether the scaling back of existing tariffs will actually take place, but regardless this is a step forward,” said Ryan McKay, a commodity strategist at TD Securities, adding in the near term gold will likely trade in a $1,460-$1,480 range. “They have some framework to scale back the existing tariffs in stages so that is the main bullish part here for risk assets.”
Elsewhere, palladium fell 0.8pc to $1,925.69 an ounce, having notched up an all-time high of $1,979.95.
Plagued by a supply deficit, the metal has gained about 5pc so far this week, predominantly supported by mine closures across major producer South Africa.
Platinum fell 2pc at $925.05 per ounce, but was up about 3pc for the week. Silver inched down 0.2pc at $16.90 but was set to record its best weekly gain since the end of October.
Published in Dawn, December 14th, 2019
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