Gold gains on tepid greenback

london — Gold prices rose on Monday as the dollar weakened, with uncertainties over the outcome of an upcoming G20 meeting and the future course for Britain’s exit from the European Union providing further support for bullion.

Spot gold was up 0.2 per cent at $1,225.15 per ounce at 1308 GMT. US gold futures were up 0.2 per cent at $1,225.40 per ounce.

Per ounce was the price of spot gold in London

US President Donald Trump and Chinese President Xi Jinping are expected to meet on the sidelines of a G20 summit in Argentina at the end of this week.

Officials from some G20 countries, anxious to see a swift end to the Sino-US trade war, are hopeful but not confident the meeting may yield at least a partial ceasefire.

“We have the G20 meeting coming this weekend and the question is whether the US and China can strike a deal,” said Saxo Bank analyst Ole Hansen, adding gold could be set to benefit anyway because he believes the dollar is “coming to the end of its strong phase.”

At the same time, investors are keeping a close eye on the latest political developments in Europe. The euro strengthened against the dollar after the European Union and Britain agreed on Sunday to a Brexit deal, and following signs Italy is willing to reach a compromise over its 2019 budget plans. —