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* The Trump-Xi summit will not take place in March – Mnuchin
* Lack of clarity on Brexit should support the gold-badyst
By Swati Verma
March 15 (Reuters) – The price of gold rose on Friday after recovering from the sharp drop in the previous session as the dollar eased and growing worries about slowing growth global economy stimulated the demand for safe haven bullion.
Spot gold had risen 0.2% to $ 1,297.95 an ounce at 0454 GMT, after losing about 1% the day before. Gold futures in the United States increased 0.2% to $ 1,297.80 per ounce.
The dollar slipped 0.1% against major currencies and was on the brink of its biggest weekly loss since early December.
"The dollar has weakened and gold as a safe haven has benefited from the support of Brexit uncertainty. As long as gold can hold the level of $ 1,290, it can reach the first level of $ 1,302, then $ 1,310, said Ajay Kedia, director of Kedia Commodities in Mumbai.
"The support we are currently seeing at $ 1,290 shows that as long as the transaction (the Brexit) is unclear, gold should be fine."
British lawmakers voted Thursday to demand a delay in Brexit, paving the way for Prime Minister Theresa May to redouble efforts to get her divorce agreement approved by parliament next week.
Providing additional support for bullion was increasingly a sign of a slowdown in the global economy, badysts said.
The Bank of Japan on Friday reduced its badessment of overseas economies, saying they showed signs of slowing. He also downgraded his views on exports and production.
At the same time, the Chinese Prime Minister's remarks about the economic downturn suggest that one of the world's largest economies is in trouble, which offers some support for gold, said Brian Lan, Managing Director of GoldSilver Central Distributor in Singapore.
In the United States, data released on Thursday highlighted growing pressure on the economy. The number of Americans filing jobless claims increased more than expected last week, while new home sales fell more than expected in January.
"The data from the United States is not so good. Thus, weak US data and Brexit are keeping gold prices on the rise, "Kedia said, adding that the uncertainty surrounding the US-China trade talks was still lingering on the market.
A summit to seal a trade deal between US President Donald Trump and Chinese President Xi Jinping will not be held at the end of March, as previously noted, as more work is needed in US-China negotiations, said Thursday Treasury Secretary Steven Mnuchin.
In other precious metals, palladium slipped 0.1% to $ 1,555.90 an ounce, but was on track for a weekly gain of 2.7%.
Silver gained 0.6% to 15.27 dollars an ounce, while platinum jumped 1.2% to 828.57 dollars. (Report by K. Sathya Narayanan in Bengaluru, edited by Subhranshu Sahu)
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