Gold prices rose on Thursday as investors remained concerned about the imminence of a trade deal between the United States and China, while a slip in riskier assets and the US currency further supported the metal.
Spot gold rose 0.7% to $1,472.66 per ounce as of 02:05 p.m. EST (1905 GMT). US gold futures settled up 0.7% at $1,473.40 per ounce.
"There were some concerns about the 'phase one' agreement as there seemed to be some sticking points on agricultural products. As a result we did see a little new wave of buying (in gold)," said David Meger, director of metals trading at High Ridge Futures.
The trade negotiations have hit a snag over farm purchases, with China not wanting a deal that looks one-sided in the favor of the United States, the Wall Street Journal reported on Wednesday.
Economists polled by Reuters said the United States and China were unlikely to reach a permanent truce over the coming year, and while concerns have eased over a US recession, an economic rebound is also not expected any time soon.
"The dollar being a bit weaker against major currencies along with the equity markets turning off from recent highs, both of those are additional, auxiliary, factors as to why gold and silver are higher," Meger added.
"Gold should be in greater demand at least in the short term because the negotiations of a partial agreement in the trade dispute between the U.S and China appear to have stalled," Commerzbank analyst Daniel Briesemann said in a note.
Investors have read that to mean interest rates, to which gold is highly sensitive to, may be on hold until late next year.
Among other precious metals, palladium gained 1.6% to $1,736.69 per ounce. Silver rose 0.6% to $17.05 per ounce, while platinum was up 0.9% at $881.34 per ounce.
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