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·         Gold clawed higher on Thursday, propelled by a weaker dollar, short-covering and physical buying in Asia. Worries about new U.S. trade tariffs on China cast a cloud over the market, however.

·         “We’re seeing a little bit of a relief rally for the precious metals,” said Chris Gaffney, president of world markets at TIAA Bank.

·         The relief bounce and gold’s strong oversold conditions are leading some investors to short-cover, said Gianclaudio Torlizzi, partner at consultancy T-Commodity in Milan.

“The bottom is very close because I think the U.S. dollar is close to reaching the top, together with the peak of the U.S. economy,” he said.

·         Spot gold gained 0.3 percent at $1,199.68 per ounce by 1:54 p.m. EDT (1754 GMT), after rising 0.5 percent in the previous session.

·         U.S. gold futures futures for December delivery settled up $3, or 0.3 percent, at $1,204.30 per ounce.

·         Gold has tumbled more than 12 percent from a peak of $1,365.23 in April. The price levels have recently sparked a lot of physical buying, not just in active gold-buying countries like India and China but also in Southeast Asia for investment purposes, traders and analysts said.

·         India’s gold imports more than doubled in August to their highest level in 15 months as lower prices prompted manufacturers to replenish inventory.

·         China’s yuan weakened against the dollar on Thursday as investors braced for more sweeping tariffs expected soon from Washington, making gold expensive for buyers in the world’s biggest consumer, traders said.

·         Gold has been under pressure for most of this year on rising interest rates, global trade tensions and an emerging-market currency crisis, with investors parking their money in the dollar, undermining the metal’s safe-haven status.

·         “I don’t expect a sharp move from either gold or the dollar. I think we’ll be stuck here for a little while, barring any major event,” Gaffney added.

·         Markets will closely watch a U.S. employment report due on Friday for clues about the pace of interest rate increases by the Federal Reserve.

·         “This week’s non-farm payrolls data could strengthen the dollar further and push gold down. But it is likely to take support near $1,140,” said Hareesh V, head of commodity research at Geojit Financial Services.

·         Spot silver lost percent at $14.14 per ounce. The metal hit an over 2-1/2-year low at $13.97 early this week.

·         Platinum climbed 1 percent to $790.90 per ounce while palladium rose 0.1 percent at $973.50.

Reference: Reuters, CNBC