Gold Edges up Ahead of G20 Meeting; Set to Post Second Weekly Gain

The Equicom | Commodity Market News

Gold prices inched up on Friday, set to rise for the second straight week, on safe-haven demand for the metal ahead of the G20 summit next week where the leaders of the United States and China are set to discuss their trade dispute.

Spot gold was up 0.1 per cent at $1,227.90 per ounce at 0439 GMT. The yellow metal was up around 0.5 per cent after a 1 per cent gain last week.

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US gold futures edged 0.1 per cent higher at $1,228.9 per ounce.

President Xi Jinping is due to hold talks with US President Donald Trump at the G20 meeting that starts on Nov. 30 in Argentina to reconcile their trade dispute.

The US is set to raise its tariffs to 25 per cent on $200 billion of Chinese imports on Jan. 1 from 10 per cent currently. Trump has also threatened to impose tariffs are all Chinese imports unless US demands are addressed.

The Dollar index, which measures the greenback against a basket of six major currencies, fell and is drifting lower after reaching a 16-month high of 97.69 earlier this month.

The Dollar declined as a potential global economic slowdown raised doubts about the pace of interest rate increases by the Fed next year.

Investor interest in bullion was reflected in holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, which rose on Wednesday to their highest since the end of August.

Spot gold may test a support at $1,211 per ounce, as it is peaking around a resistance at $1,231.

Among other precious metals, silver was up 0.3 per cent at $14.50 an ounce, while platinum edged 0.1 per cent lower at $843.30 per ounce.

Palladium was down 0.2 per cent at $1,150.74 an ounce. The metal was headed for its biggest weekly per centage decline since the week of July 20, down about 2.3 per cent so far.