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Gold prices hit their highest level for more than two weeks on Monday as the dollar weakened in hopes that the US and China are getting closer to a trade deal , while palladium has reached a record level.
Spot gold gained 0.1% to $ 1,322.41 an ounce at 7:47 am GMT. The metal hit $ 1325.30 earlier, just below a 9 – month high of $ 1.326.30 an ounce on January 31.
Gold futures in the US rose 0.3% to $ 1,326.1 an ounce.
"Reducing the risks associated with trade negotiations has certainly been beneficial for the markets," said Daniel Hynes, an ANZ analyst, adding that signs of progress in the talks had reduced the dollar's appetite, who supports the gold.
The dollar was slightly weaker on Monday, as rising expectations of a US-China trade deal led investors to move away from the safety of the greenback, which had been the preferred haven during the second half of the year. commercial conflict.
The United States and China will resume their trade talks this week in Washington with little time to mitigate their deadly trade war, but US President Donald Trump reiterated on Friday that it could extend the March 1 deadline for an agreement and keep tariffs on Chinese products up.
Gold spot gold prices have risen about 3.3% since the beginning of the year, in hopes that the two largest economies will make a truce and the expectations of the Reserve to suspend its interest rate hike cycle.
The minutes of the January Fed's monetary policy meeting is expected on Wednesday and is expected to provide further guidance on whether or not a rate hike this year.
"Less restrictive monetary policies are generally supportive of gold, which has been beneficial since the Fed suspended its tightening process," said Nicholas Frappell, global managing director of ABC Bullion.
"The market will look closely at US and Chinese data and I think gold will again target a $ 1,326 level test."
However, the holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, hit their all-time low this year at 793.03 tonnes on Friday.
Meanwhile, palladium hit a record high of $ 1,449 an ounce and remained in a broad range of $ 20 early trading. The metal is currently trading at $ 1.442 an ounce, up 0.7%.
"In addition to supply-side issues, the (palladium) market will post a significant deficit this year … China's better-than-expected demand potential will exacerbate this tension," he added. Hynes, from ANZ.
Platinum edged up 0.2% to $ 803.18 an ounce, after peaking at nearly two weeks of $ 807 earlier in the session. The money has changed little at $ 15.78.
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