Gold moves higher in New York

Gold prices edged higher in New York close on Tuesday, buoyed by a slight retreat in the US dollar amid optimism about a potential resolution of the US-China trade conflict. Spot gold was up 0.2 percent at $1,310.95 an ounce at 1:48 p.m. EST (1848 GMT), having declined 0.4 percent in the previous session. US gold futures settled 0.2 percent higher at $1,314.00.
"Gold is likely to be quiet for the remainder of the week pending news on the US-China trade talks, and the US government shutdown," said Bob Haberkorn, senior market strategist at RJO Futures. "If there is an announcement that the government is going to be open and if there's a breakthrough in trade talks, gold will initially sell off, but traders want to own gold right now with the US Federal Reserve being dovish."
The dollar index, which tracks the greenback against six major currencies, eased on Tuesday, after its longest winning streak in two years which was partly buoyed by investors piling into it as a preferred refuge amid worries over the trade row. In the latest development surrounding a logjam in Washington over funding for a border wall with Mexico, President Donald Trump said he had yet to decide whether to support an agreement reached by congressional negotiators to avert another partial government shutdown that includes no funds for the wall.
Gold's momentum was held in check by increased appetite for riskier assets, with world stock markets gaining on expectations of a trade agreement between Washington and Beijing. Spot gold rose to its highest since late April at $1,326.30 in January, after the Fed kept interest rates steady and said it would be patient on further hikes amid a cloudy outlook for the US economy due to global growth concerns.
On the technical front, "if we now see short-term resistance break around $1,315, then this could lead to further technical follow-up buying pressure toward - and possibly beyond - January's high of $1,326," Forex.com's Razaqzada added. Meanwhile, palladium gained 0.8 percent to $1,397 an ounce, while silver rose 0.1 percent to $15.71. Platinum climbed 0.4 percent to $784.50 an ounce, having touched its lowest since Jan. 2 at $779.50 in the previous session.