Gold Stays Above $1,500 on Economic News

Gold Stays Above $1,500 on Economic News

Gold Stays Above $1,500 on Economic News

The ongoing trade war between the USA and China has also increased demand for haven assets, with traders and analysts in Bloomberg's weekly survey near-unanimous on the bullish outlook for gold.

Globally, spot gold was trading higher at Dollars 1,504 an ounce in NY amid ongoing trade tensions between US-China and slowing global economic outlook which lifted gold's appeal as safe-haven asset.

Spot gold was little changed at $1,500.20 per ounce as of 0439 GMT.

Gold held steady on Thursday, hovering near the key psychological level of $1,500, supported by uncertainties around Sino-US trade war and a slew of interest rate cuts by global central banks amid fears of an economic slowdown.

"The ongoing issues on the trade front have been battering markets for the course of this week", ANZ analyst Daniel Hynes said.

The metal has risen more than 17 per cent so far this year and about US$100 over the past week, in a stellar run propelled by trade tensions and an increasingly dovish shift in policy by central banks amid fears of slowing growth. "Clearly, at some point, the stock market will turn around, the USA and China could even make a trade agreement, and things will calm down".

In the latest development in the protracted dispute between the world's biggest economics, a report said that Washington is delaying a decision about licenses for US firms to restart trade with Huawei Technologies.

Both metals have rallied amid worries about the global economic outlook and as central banks around the world continue to cut interest rates.

Lower interest rates tends to boost gold as it reduces the opportunity cost of holding non-yielding bullion and weighs on the USA dollar.

The dollar index was down 0.1% and was heading for its first weekly decline in four.

However, recent economic readings out of the USA and China shock-off some recession fears and lifted investors sentiment towards riskier assets. "Given the speed of the rise in gold prices, we may have to see some period of consolidation before there is any test of that higher level".

"Any reconciliation signal between (US President Donald Trump) and China could send investors back to riskier assets", ActivTrades analyst Carlo Alberto De Casa said in a note.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 1.02 per cent to 845.42 tonnes on Wednesday. Platinum gained 0.4% to $863.65, while palladium climbed 0.6% to $1,430 an ounce.