Gold prices touched eight-month highs on Wednesday, just hours before the US and China resumes trade negotiations later in the day.
Gold futures contract advanced 0.2 percent to $1,311.80 per ounce, having reached its highest since May 14 of $1,313.30 earlier in the session. Spot gold also rose 0.1 percent to $1,313.16 per ounce.
This year, the precious metal has added 2.4 percent and is on track for a fourth straight monthly climb, while an indicator of the US dollar has dropped for the third straight month.
Sentiment for the precious metal remains strong as well, with holdings in bullion-backed exchange traded funds at their highest levels since April 2013 after approximately 61 metric tons were added this year.
Gold is gaining renewed interest as investors mull over the likelihood of fewer US rate increases this year and as they keep an eye on signs of slower global economic growth amid the US-China trade war.
China’s economy showed further deceleration this month, according to a US-based software firm’s early indicator, while major companies such as tech giant Apple Inc. and heavy machinery maker Caterpillar Inc. are taking a hit.
The delayed release of the US government data following the partial shutdown, and negotiations over the UK’s Brexit deal, have also raised uncertainty in financial markets.