Gold prices hit their highest level in more than a week on Wednesday as renewed concern over the US-China trade dispute and its potential impact on global growth dented risk sentiment, spurring some demand for safe-haven assets.
Spot gold was up 0.2 percent at $1,287.20 per ounce, as of 0909 GMT, having hit their highest since April 26 at $1,287.94, earlier in the session.
US gold futures edged 0.2 percent higher to $1,288.20 an ounce.
Some in the market expect the gold price rally to be limited, with the weakness in equity markets seen as temporary.
"So far Trump's tariff threat has had much bigger impact on the stock markets than precious metals. While gold is drawing support from the scenario, investors are not accumulating the metal," said Carlo Alberto De Casa, chief analyst with ActivTrades.
While gold has benefited from a rising demand for safe-haven assets, prices have not been able to significantly move up despite the given backdrop in global markets.
"Gold needs to break above the first resistance at $1,288 to see more recovery. The weakness in markets is seen as a temporary one and that's why we are not seeing a huge rally in the precious sector," ActivTrades' De Casa said.
After stabilizing around $1,280 levels, gold is seeing some upside momentum in the near term, analysts at bullion trader Wing Fung said in a research note, but added that the resistance at $1,300 will still be hard to break.
Spot gold may test resistance at $1,291 per ounce, a break above which could lead to a gain to the next resistance at $1,299, according to Reuters technical analyst Wang Tao.
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