Gold clawed back from a 19-month low on Thursday on short-covering and as the US dollar softened following news that Beijing will hold trade talks with Washington late this month. A Chinese delegation led by Vice Minister of Commerce Wang Shouwen will meet with US representatives led by Under Secretary of Treasury for International Affairs David Malpass, the Ministry of Commerce said, offering a glimmer of hope for progress in resolving a conflict that has set world markets on edge.
The news moved the dollar further away from a 13-month peak as risk aversion eased. Spot gold was up 0.1 percent at $1,175.07 an ounce as of 0726 GMT. US gold futures were, however, down 0.2 percent at $1,182.1. Earlier in the session, amid a broad commodity sell-off and some stop-loss selling spot prices fell as much as 1.2 percent to $1,159.96, the lowest since January 2017, traders said. "We expect interest in the precious metal to rekindle as the strength in the USD fades. But that might be a bit of a while yet," said John Sharma, an economist at National Australia Bank.
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