Gold Prices rose dollar softens on Fed Rate Outlook

Gold prices rose on Friday as the dollar retread on expectations that the Federal Reserve may pause interest rate hikes if the US economy slow this year while investors awaited news on progress in the US-China trade talks.

Spot gold rose 0.6 per cent to $1,293.55 per ounce as at 0604 GMT, heading for a fourth straight weekly gain. The yellow metal is up 0.7 per cent so far this week.

US gold futures were up 0.5 per cent at $1,293.4 per ounce.

Silver rose about 0.9 per cent to $15.70 per ounce, while platinum was unchanged at $819.74 per ounce.

“The weaker dollar and a more dovish Fed are the two most alluring factors for gold,” said Stephen Innes, APAC trading head at OANDA.

“There are concerns for the US economy to slow down, perhaps towards the end of 2019 and into 2020, so the markets are pricing rate cuts.”

“Dilemma over the US-Sino trade dispute is still raising eyebrows and needs clarity,” said Sugandha Sachdeva, vice-president – metals, energy and currency research, Religare Broking Ltd.

“Gold will need some fresh news to trigger prices to break the $1,300 level bar. $1,299 would be a critical level for further upside with mild resistance at $1,310,” said Hareesh V, head of commodity research at Geojit Financial Services.

Spot gold is expected to retest a resistance at $1,299 per ounce, with a good chance of breaking above this level and rising further to $1,311, according to Reuters technical analyst Wang Tao.

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