Gold prices rose on Thursday as investors bought the safe-haven metal on doubts about whether the United States and China will seal a trade deal after President Donald Trump signed a legislation supporting Hong Kong protesters.
Palladium retreated slightly after hitting an all-time peak of $1,836.61 earlier in the session. Spot gold was up 0.1% at $1,455.63 per ounce by 0659 GMT. US gold futures rose 0.1% to $1,454.80.
Trump on Wednesday signed a legislation into law that requires the State Department to certify, at least annually, that Hong Kong retains enough autonomy to justify favourable US trading terms. Beijing condemned the move and said it would take "firm counter measures."
"With the latest developments of Trump signing the Hong Kong bill, there are doubts that there will be any deal, even a first phase," said Jigar Trivedi, a commodities analyst at Mumbai-based Anand Rathi Shares & Stock Brokers.
"Even though they've said they will sign a deal by year-end, they've not talked about the venue, or who will go to whom. So, I don't think the trade deal will be signed so easily and gold will be supported."
Gold eased 0.5% in the last session on a raft of upbeat economic data from the United States. Economic growth picked up slightly in the third quarter, weekly jobless claims fell, while new orders for key US-made capital goods increased.
"Global growth concerns have definitely eased, but not gone," said John Sharma, an economist at National Australia Bank, adding gold would remain supported even if an interim deal is passed since the most complex issues, such as intellectual property, have been pushed down the road.
Gold, considered a safe store of value during economic or political uncertainties, has gained more than 13% this year, mainly due to the tariff dispute.
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