Gold prices inched up on Thursday on buying after the bullion hit a one-week low and posted its biggest one-day percentage fall in nearly 9 months in the previous session.

Spot gold was up 0.2 per cent at $1,327.72 per ounce at 0419 GMT, after hitting a one-week low of $1,323.20 in the previous session. Prices dropped 1.5 per cent on Wednesday to mark their biggest one-day percentage decline since July 3, 2017. US gold futures for April delivery climbed 0.2 per cent to $1,326.80 per ounce.

“Gold is still being seen as a safe-haven asset at the moment and we are seeing good physical buying, so that is supporting gold,” said Brian Lan, managing director at dealer GoldSilver Central in Singapore.

Concerns over global trade war

Concerns about the global trade war have eased “but it doesn't mean it is over,” Lan added.

US President Donald Trump’s tariffs on Chinese goods may not be imposed until early June, administration officials had said on Wednesday, with public consultations and potential tariff revisions buying time for negotiations to forestall them.

However, gains in the yellow metal were curbed as the USdollar held firm, having made its biggest daily gain in more than a half year, bolstered in part by hopes of detente in East Asia.

North Korea's leader Kim Jong Un pledged his commitment to denuclearisation and meet US officials, China had said on Wednesday after his meeting with President Xi Jinping, who promised China would uphold friendship with its isolated neighbour.

In other precious metals, spot silver gained 0.4 per cent to $16.32 per ounce. Platinum rose 0.7 per cent to $938 per ounce, after hitting a near three-month low of $929.50 per ounce in the previous session.

Palladium climbed for the first time in six sessions, up 0.4 per cent to $969.40 an ounce. Prices dropped to a near three-week low of $961.65 on Wednesday.

Related Topics
comment COMMENT NOW