Gold gains as global growth concerns dent risk appetite
Gold rose on Friday as a gloomy global economic outlook dented risk appetite, but a firm dollar stemmed bullion’s advance and kept the metal on track for its first weekly decline in three.
Spot gold was up 0.3 per cent at $1,313.95 per ounce at 1:54 pm EST (1854 GMT), having recovered from an over one-week low of $1,302.11 touched on Thursday.
US gold futures settled up 0.3 per cent at $1,318.50.
US President Donald Trump said on Thursday he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline set by the world’s two largest economies for a deal.
However, while bullion has risen about 13 per cent from 1-1/2-year lows touched in August, mostly because of volatile stock markets and a dovish US Federal Reserve, a strong dollar has driven gold down about 0.3 per cent so far this week.
The greenback held firm versus a basket of other currencies, ..
“The fact that the US economy is not seeing weak data like the euro zone is supportive of the dollar. If the dollar was a little weaker today, gold would probably be up $7 or $8, instead of $3.”
Stocks fell worldwide for a third straight day on worries about a global slowdown and the lack of any sign of a resolution to a US-China trade row.