Gold prices rose today, having fallen from the previous high of $ 1,300 to the lowest level since Jan. 25, as the dollar weakened as opportunities for a China-US trade deal grew.
At 0557 GMT, the spot price of gold was up 0.1% at $ 1294.05 an ounce after touching its lowest level in more than a month at $ 1289.91 during the previous session, while US gold futures fell 0.2% to $ 1296.10.
The US-China trade deal appears to be close, eliminating US duties on Chinese goods, with Beijing pledging structural changes to its economy and retracting retaliatory fees, a source familiar with the progress of the negotiations said on Wednesday.
"The dollar increased significantly last week and pushed gold prices down, but we are seeing a retreat from that now (due to the possibility of a trade agreement)," said Kyle Roda, market analyst at IG Markets in Melbourne.
"The global economy is still slowing and central banks will have to intervene to support their economies, which gives gold a chance to rise in the medium term," he said, adding that the settlement of the war trade would support an improvement in growth prospects.
The dollar fell about 0.1% against major currencies.
Palladium rose 0.6% in spot trade to $ 1,555 an ounce.
Analysts say the threat of a possible strike in South Africa, the main producer of the self-stimulating metal, keeps the price of platinum high.
Silver rose 0.2% to $ 15.22, while platinum also advanced 0.2% to $ 858.35 an ounce.