Gold price edges higher as dollar weakens ahead of US-China meeting

WEB DESK: Gold prices gained slightly on Thursday as a weaker dollar lifted demand for the metal, while traders kept a close watch on an upcoming meeting between US President Donald Trump and Chinese President Xi Jinping, hoping it could bring progress on trade talks.

Spot gold rose 0.2 percent to $3,937.88 per ounce by 0235 GMT, while US gold futures for December delivery slipped 1.2 percent to $3,950.70 per ounce.

The dollar index eased 0.2 percent after reaching a two-week high in the previous session, making gold more affordable for holders of other currencies.

Traders cautious ahead of Trump-Xi meeting

“Gold’s move today seems more technical than fundamental,” said Kyle Rodda, an analyst at Capital.com. “A lot has gone against gold this week. The potential US-China trade deal reduces its appeal as a safe-haven asset.”

He added that the Federal Reserve’s latest rate decision had also weighed on sentiment. “The Fed’s hawkish cut and the reduced odds of another rate cut in December are not favourable for gold in the short term. Still, the longer-term trend remains positive,” Rodda said.

Earlier this week, the US Federal Reserve trimmed interest rates by a quarter of a percentage point for the second time this year, setting the benchmark range at 3.75 to 4.00 percent.

Fed Chair Jerome Powell noted that policymakers were divided on the path ahead, cautioning markets against assuming more rate cuts later this year.

Gold, which pays no interest, often performs better in low-rate environments and during times of uncertainty.

Markets look to South Korea summit

Attention now turns to Trump’s meeting with Xi in South Korea. US negotiators have signalled they want to revive a fragile trade truce, but tensions remain, with several long-standing economic disputes yet to be resolved.

During his visit, Trump also met South Korean President Lee Jae Myung to finalise a bilateral trade deal and struck an upbeat tone about his upcoming talks with Xi.

In other precious metals, spot silver was little changed at $47.51 per ounce, platinum edged up 0.3 percent to $1,590.21, and palladium gained 1.2 percent to $1,417.80.

Gold price in Pakistan rises amid global uptick

Gold prices in Pakistan climbed on Wednesday, tracking the upward movement seen in the international market.

According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold in Pakistani market rose by Rs3,500 per tola to reach Rs419,862 in the local market. Similarly, the price of 10-gram gold went up by Rs3,000 to settle at Rs359,963.

A day earlier, the precious metal had dropped sharply, with the per tola rate falling by Rs14,000 to Rs416,362. The latest recovery reflects renewed strength in global bullion prices, which have been fluctuating in recent sessions.