LONDON: A softer dollar lifted gold on Monday after two sessions of declines, but investors prepared for more weakness as simmering US-China trade tensions suggested the currency would stay supported and the world’s largest economy remained robust.

Spot gold was up 0.4 per cent at $1,197.43 an ounce by 1000 GMT after falling 0.6pc on Friday, when it marked its third straight weekly decline.

US gold futures added 0.1pc to $1,202.

Gold prices have declined more than 12pc from April, hurt by intensifying global trade tensions and rising US interest rates.

Spot gold may retest support at $1,193 per ounce after bouncing moderately into a range of $1,197-$1,200, according to Reuters technical analyst Wang Tao.

Gold has held a $25 range for the past few weeks and could remain there until the markets receive specific guidance on rate hikes from the upcoming September Fed meeting, said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

“It is a range-buying trade as people watch for moves in the dollar and developments in US-China tariffs dispute.”

Among other precious metals, spot silver climbed 0.9pc to $14.16.

Platinum rose 0.7pc to $797.30, while palladium dipped 0.1pc to $976.90.

Published in Dawn, September 18th, 2018