Gold touched its highest level in more than a week yesterday as fears of a long US-China trade war hurt sentiment, while weak US economic data boosted expectations of a cut in the Federal Reserve's interest rates.
Spot gold rose 0.1 percent to $ 1286.21 an ounce. Earlier in the session, gold touched $ 1287.32, the highest level since May 17, while gold in US futures rose 0.2% to $ 1285.6 an ounce.
A string of weak data from the United States recently raised concerns that a long trade war with China had begun to affect the US economy and fueled speculation that the Federal Reserve would cut interest rates, which is highly expected.
US President Donald Trump has repeatedly complained that Reserve Reserve policies prevent economic growth from reaching maximum results.
The dollar is struggling against a basket of six major currencies after dropping from a two-year high in the previous session due to the US-China trade row, making gold cheaper for holders of non-dollar currencies.
On other precious metals, silver rose 0.3% to $ 14.61 an ounce while palladium dropped 0.4% to $ 1329.9, while platinum rose 0.3% to $ 804.5 an ounce.