Gold hit a two-week high on Thursday, supported by a weaker dollar and trade worries between Washington and Beijing, even as the US Federal Reserve forecast a slightly faster pace of interest rate hikes this year. Spot gold rose 0.3 percent to $1,302.50 per ounce at 0744 GMT. It earlier hit a high of $1,303.38 an ounce, its best since May 31.
US gold futures for August delivery rose 0.4 percent to $1,306 per ounce. "Reports that President Trump was preparing to put tariffs on billions of dollars of Chinese goods as soon as Friday raised concerns in the market that economic growth would be impacted. This saw some safe-haven buying emerge," ANZ said in a note.
US President Donald Trump will meet with his top trade advisers on Thursday to decide whether to activate threatened tariffs on Chinese goods.
"Investor demand was also supported by a slightly weaker US dollar in the wake of the Fed decision to raise interest rates," ANZ said. The US Federal Reserve raised interest rates on Wednesday, and signalled two additional hikes by the end of this year, compared to one previously.
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