· Palladium, meanwhile, gained 0.2% to $1,703.44 an ounce as of 0638 GMT and held close to Thursday’s all-time peak of $1,704.59, putting it on track for an about 2% weekly gain.
The autocatalyst metal was also set to climb for a fourth straight session.
Spot gold inched 0.3% higher to $1,499.15 per ounce, but slipped about 0.3% in the week. U.S. gold futures rose 0.1% to $1,502.30.
· “We have news that is positive in terms of trade talks, but no actual resolution yet. The market is still a little sceptical,” said Brian Lan, managing director at dealer GoldSilver Central in Singapore.
“A few things are still hanging, including a no-deal Brexit. Time is ticking but not much progress is happening. The (situation in) Hong Kong is also not resolved.”
· Equity markets gained after U.S. President Donald Trump said he would meet with China’s top trade negotiator, while a White House official said the first day of talks had gone “probably better than expected.”
· While the two sides could reach some sort of agreements on aspects such as currencies and copyright protections, they were not expected to address the most contentious issues.
· The dollar, which has emerged as an alternative safe-haven during the trade war, was a shade weaker versus its rivals , helping drive gold prices higher.
· With just three weeks to go before the UK is due to leave the European Union, lack of clarity on the terms or indeed whether it will leave at all also kept investors on the edge.
Adding to the global uncertainty was the attack on an Iranian-owned oil tanker on Friday. The vessel was struck by two missiles off the Saudi port of Jeddah, Iranian state television reported.
· Investors will also keep a close eye on any cues from the U.S. Federal Reserve, with data on Thursday showing U.S. consumer prices were unchanged in September while underlying inflation retreated, supporting expectations the central bank will cut interest rates in October.
· “Prices are on the downside, going away from core fundamentals and reacting to sentiments. When markets move sentimentally, you can expect a wild swing in prices,” said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.
Gold will be find support around $1,480 in the short term and face resistance at $1,540, she added.
Gold is currently supported in the $1,490-$1,496 tight range in Asia, despite an informal confirmation from Trump, speaking at a campaign rally, boasting how well trade talks are going with China. Risk has rallied yet Gold is at a standstill ahead of highly anticipated high-level trade talks later today in Washington when Trump and Vice Premier Lui finally meet.
Gold levels
Technically, a 50% mean reversion of the late June swing lows to recent highs around 1460/70 will be on the cards if geopolitics maintain positive traction. However, on the upside, a foothold above the 1500 level will open prospects for the 1520 level again ahead of a 1535 resistance target.
· In other metals, platinum rose 0.4% to $903.24 an ounce, while silver rose 1% to $17.66.
Reference: Reuters, FX Stree
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