Gold prices rose on Thursday, May 31, as the dollar eased from 6-1/2-month highs hit earlier this week, with prices further supported by concerns over U.S.-China trade.
Spot gold soared by 0.4 percent to $1,305.87 per ounce by 0652 GMT, but was down 0.7 percent for the month, in what could be its second straight monthly decline.
U.S. gold futures for June delivery were 0.3 percent higher at $1,305.80 per ounce.
“Gold is largely being influenced by how the dollar is moving and the dollar move overnight is a clear representation of why gold prices have risen this morning,” said OCBC analyst Barnabas Gan.
“Prices are still very dependent on how risk aversion is playing up and the global news surrounding the U.S.-Sino trade tensions as well as the possibility of a North Korea summit, that uncertainty is a big driver for gold prices,” Gan added.
China said on Wednesday it was ready to fight back if Washington was looking for a trade war, days ahead of a planned visit by U.S. Commerce Secretary Wilbur Ross.
Meanwhile, U.S. and North Korean officials met in New Yorklate on Wednesday in the first of two days of talks about the future of Pyongyang’s nuclear weapons program and a possible summit between U.S. President Donald Trump and North Korean leader Kim Jung Un.
In other precious metals, spot silver rose 0.4 percent to $16.58 an ounce and platinum gained 0.7
percent to $912.40 an ounce.
Both the metals were headed for a monthly rise of about 1percent, their biggest since January. Palladium was 0.2 percent higher at $987 an ounce and was headed for its biggest monthly gain since December, climbing over 2 percent.
