Gold prices rose on Thursday, supported by a weaker dollar and as investors sought safe-haven assets after US President Donald Trump warned a trade deal with China was in danger, sending global stocks lower. Concerns about the continuing trade dispute's potential impact on economic growth has also weighed on palladium prices, which tumbled to their lowest in four months.
Spot gold gained 0.3 percent at $1,284.55 per ounce as of 1:57 p.m. EDT (1757 GMT), having climbed to its highest since April 15 at $1,291.39 on Wednesday. US gold futures settled up 0.3 percent at $1,285.20 an ounce. "Gold remains fairly stable on safe-haven appeal due to weakness across the board in global equities on the back of concerns regarding trade," said David Meger, director of metals trading at High Ridge Futures.
Trade talks in the next several days will keep the uncertainty high, he added. The US Trade Representative's office has said that tariffs on $200 billion worth of Chinese goods would increase to 25 percent from 10 percent at 12:01 a.m. (0401) GMT on Friday, right in the middle of two days of meetings between Chinese Vice Premier Liu He and Trump's top trade officials in Washington.
"There was a strong level of technical resistance at $1,290 - $1,292, it is a level we have fallen back from and we are consolidating below," Meger said. Gold's precious metal peers were less resilient, taking their cues from the industrial side on concerns about demand amid the trade spat, Bart Melek, head of commodity strategies at TD Securities in Toronto, said.
Palladium fell for the fourth straight session, down 1.7 percent at $1,295.50 per ounce. The metal had fallen as much as 4 percent to its lowest level since Jan. 4 earlier in the session. Silver slipped 0.4 percent to $14.78 per ounce, while platinum fell 1 percent to $848.25 per ounce. Both metals hit one-week lows earlier in the session.
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