Gold inches higher as U.S.-China trade optimism pressures dollar

Monday,   20-Aug-2018   11:24 AM (IST)

Gold prices inched higher on Monday as hopes of easing trade tensions between the United States and China put pressure on the dollar, adding to demand for the yellow metal that improved last week after prices touched 19-month lows.Spot gold rose 0.1 percent to $1,185.31 an ounce. Last week, it touched its lowest since January 2017 at $1,159.96.The metal fell 2.2 percent last week, marking the sixth consecutive weekly decline. It was also the worst weekly performance since December.U.S. gold futures were up 0.7 percent at $1,191.60 an ounce.Spot gold’s 14-day relative strength index was at 31.977, after touching a low of 21.187 last week. A reading below 30 indicates a commodity is oversold and could herald a price correction.Gold has tumbled over 13 percent from its April high as a rally in the greenback made dollar-priced bullion more expensive for buyers using other currencies.Physical gold demand in second largest consumer India regained momentum last week, with lower prices attracting fresh buying and driving premiums higher in other major Asian hubs as well.Spot silver climbed 0.2 percent to $14.78 an ounce.Platinum rose 1 percent to $789.70, while palladium remained steady at $910.75.