Gold traded in a tight $4 range on Friday as investors looked for signs of progress in ongoing US-China trade talks, while concerns of a global slowdown in the wake of sombre economic data out of United States and China provided underlying support. Spot gold rose 0.1 percent to $1,313.66 per ounce as of 0722 GMT, while US gold futures gained 0.2 percent to $1,316.90.
"The market is just waiting for a breakthrough. So long as China-US trade concerns are lingering in the market, investors are in ambiguity about where they should go," said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade Ltd.
Two White House negotiators will meet with Chinese President Xi Jinping later on Friday, but there has been no decision to extend a US deadline for a deal by March 1, US President Donald Trump's economic adviser Larry Kudlow said on Thursday. US tariffs on $200 billion worth of imports from China are scheduled to rise to 25 percent from 10 percent if the two sides don't reach a deal by then.
Investors have, since last year, sought safety from the US-China trade dispute in the greenback, which was marginally higher on Friday, capping gold's gains. Spot gold is expected to revisit its Jan. 31 high of $1,326.30 per ounce, as suggested by its wave pattern and a retracement analysis, according to Reuters technical analyst Wang Tao.
Gold had gained 0.5 percent in the previous session, its biggest intraday gain since Jan. 30, as disappointing US economic data increased expectations that the Federal Reserve would stick to its dovish stance on monetary policy.
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