Gold prices surged on Thursday as uncertainty over the trade talks between the U.S. and China supported the gold’s safe-haven demand.
Signs of uncertainty in U.S-China trade talks saw traders pile into gold, helping the precious metal gain from a heavy selloff last week despite a strong uptick in the dollar but now fell.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange were up $5.5 or 0.4 percent to $1,296.6 a troy ounce by 3:30 ET.
In other precious metal trade, silver futures added 0.11 percent to $16.515 a troy ounce, and platinum futures gained 0.9 percent to $908.7 an ounce.
Dollar Index, Feds Reserve
The U.S. dollar index that tracks the greenback against a trade-weighted basket of six major currencies last stood at 93.84, which is down 0.07 percent after climbing above the 94 level for the first time this year, reaching 94.10 on Wednesday night.
The dollar fell after the latest Federal Reserve meeting hinted at a dovish approach to rate hikes later this year.
The Federal Reserve meeting on Wednesday indicated central bankers are happy to let inflation run above the 2 percent target for a “temporary good”, signaling no rush to tighten monetary policy.
Dollar-denominated assets such as gold are sensitive to moves in the dollar,
U.S.-China Trade Talks
The uptick in geopolitical tensions arrived as President Donald Trump on Tuesday said he was not pleased with recent U.S.-China trade talks.
Also, it raised doubts about whether the U.S.-North Korea summit would take place next month.
Additionally, Trump said there is a “substantial chance” the historic meeting between him and North Korea’s leader Kim Jong Un will not happen in June as planned unless Pyongyang meets certain conditions.
Subscribe to FSM News and fill yourself in on the freshest marketing news. We provide comprehensive and latest news and analysis regarding Forex, commodities, technology, financial, economy, and more.