Gold prices inched up on Wednesday in subdued trade ahead of a U.S. holiday amid weakness in dollar and equities, as concerns about global economic growth gripped financial markets.
Spot gold was up 0.2 percent at $1,224.02 per ounce at 0808 GMT. U.S. gold futures rose 0.2 percent to $1,223.9 per ounce.
“Gold is tracking the dollar movement,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong, adding “trading is expected to be range-bound at least till Thanksgiving unless something major happens.”
The dollar index, which measures the greenback against a basket of six major currencies, was down about 0.2 percent.
It had gained about 0.7 percent in the previous session as investors shunned riskier assets in favour of safe haven currencies on escalating worries about slowing global growth and the U.S.-Sino trade war.
Meanwhile, Asian stocks slipped, with MSCI’s broadest index of Asia-Pacific shares outside Japan down about 0.5 percent.
The yellow metal has fallen about 10 percent since hitting a peak in April as investors bought the dollar with the U.S.-China trade war unfolding against a background of higher U.S. interest rates.
Investors are now keeping a close eye on the G20 leaders’ summit later this month in Argentina where U.S. President Donald Trump is expected to meet with Chinese President Xi Jinping to discuss the bilateral trade dispute.
The Trump administration on Tuesday said that China has failed to alter its “unfair” practices at the heart of the U.S.-China trade conflict.
“The on-going trade tensions between the U.S. and China are driving global equities lower and continue to underpin interest across the precious complex, while uncertainty over Brexit is also adding fuel to the fire,” traders at MKS PAMP said in a note.
Spot gold is expected to test a support at $1,211 per ounce, with a good chance of breaking below this level and falling more to $1,202, said Reuters technical analyst Wang Tao
Among other precious metals, silver climbed 0.5 percent at $14.39 an ounce. Silver hit its highest level since Nov. 8 at $14.49 in the previous session.
Palladium gained 1.42 percent to $1,156.49 per ounce, while platinum was up 0.7 percent at $843.89 per ounce.
