Gold Prices Inch Up as Dollar Slips

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© Reuters. © Reuters.

Investing.com – Gold prices inched up while the dollar slipped on Thursday following reports that China delivered a written response to U.S. trade demand, and that the two nations resumed talks earlier this week to diffuse their trade disputes.

for December delivery on the Comex division of the New York Mercantile Exchange inched up 0.1% at $1,211.8 a troy ounce by 1:00 AM ET (06:00 GMT).

Meanwhile, Asian stocks were lifted by reports that Beijing and Washington resumed talks to diffuse their trade disputes earlier this week.

Citing three U.S. government sources, Reuters reported that China delivered a written response to the U.S. for trade reform. However, the sources did not provide any further details.

“For gold, 1,200 is providing a good support and the market could trade firmer from here,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

Gold has fallen more than 11% from a peak in April as amid escalating U.S.-China trade friction. Higher U.S. interest rates was also a headwind for the precious metal.

The that tracks the greenback against a basket of other currencies was down 0.2% to 96.72.

Federal Reserve chairman Jerome Powell said in Dallas on Wednesday that the U.S. economy is “in such a good place right now” and that markets should be prepared that the central bank could raise rates at any time starting in 2019. 1689024

Powell reiterated the central bank is independent and would continue to do what is best for the U.S. economy.

His comments came after Trump accused the Fed of raising rates too fast during his administration.

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