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• Gold prices inched higher on Thursday as the dollar softened amid easing Sino-U.S. trade tensions, but investors remained cautious ahead of next week’s U.S. Federal Reserve policy meeting.

Spot gold was up 0.1 percent at $1,204.69, as of 0628 GMT, after rising 0.5 percent in the previous session.

U.S. gold futures were up 0.1 percent at $1,209.30 an ounce.

• “The risk (sentiment) is sort of flattening, but that’s also taking wind out of the safe-haven appeal of the U.S. dollar (helping gold) ... For gold to break $1,210, we need to see the dollar weakening against the emerging market currencies as well as the euro,” said Stephen Innes, APAC trading head, OANDA.

“However, there is not much of a safe-haven appeal (for gold) as the market is not packing in a lot of punch to trade war.”

• Investors have been buying the dollar believing that United States has less to lose from the dispute. However, a spot of weakness in the dollar indicated that worries over trade tensions have eased as the tariffs were seen to be at lower levels than some had feared.

• Gold has declined about 11.6 percent from a peak in April, hurt by the intensifying U.S.-China trade dispute and on rising U.S. interest rates.

• Investors are awaiting next week’s Federal Reserve meeting. The U.S. central bank is widely expected to raise benchmark interest rates and shed light on the path for future rate hikes.

• “Recent Fed commentary has implied a steady pace of tightening so anything that calls that into question will be positive for gold,” said Nicholas Frappell, global general manager, ABC Bullion, Australia.

Gold has been stuck in a range between $1,215 and $1,187 for the past three weeks, with investors looking for a breakout on either side for further moves.

“The market gives the outward appearance of remaining range-bound and hasn’t yet done enough on the upside to alter this appearance. However, over short term, prices would strengthen to$1,211 and a break above could see $1,221,” Frappell said.

• Among other precious metals, spot silver rose 0.7 percent to $14.28 an ounce, after touching two-week highs at $14.35, early in the session. Palladium climbed 0.4 percent to $1,039.10, hovering near a five-month high of $1,041.70 hit on Wednesday.

Platinum gained 0.3 percent to $823.20, after hitting its highest since Aug. 13 at $826.40 in the previous session.

• Gold Price Outlook: Breakout Potential as XAU/USD Consolidates

Gold prices have continued to trade within a well-defined formation we’ve been tracking for months now with our immediate focus on a breakout of the monthly range. Here are the updated targets and invalidation levels that matter on the XAU/USD charts heading into the close of the week.