Gold edges up

GOLD prices drifted higher in Asian trade yesterday, extending gains into a second session, as the US dollar softened against China’s yuan and the euro.

Spot gold rose 0.2 percent to $1,213.02 an ounce at 0640 GMT, after rising 0.4 percent in the previous session. US gold futures were also up 0,2 pct at $1,220.80 per ounce.

“The dollar-CNH is a bit under pressure this morning and we’re seeing some buying on the back of that,” a Hong Kong-based trader said.

China’s yuan held firm near a one-week high versus the dollar on Wednesday, following firmer equities, extending its rise after the central bank last week took steps to curb the currency’s decline.

Against a basket of currencies, the dollar eased 0.1 percent as its recent rally on concerns over escalating trade tensions showed signs of fading.

A weaker dollar makes greenback-denominated gold cheaper for holders of other currencies.

“Gold is consolidating here for the moment. The dips on the dollar still seem to be bought so I am sceptical to call a bottom on gold,” the trader said.

Signals are mixed for spot gold, as it seems to be stuck in a neutral range of $1,206-$1,220 per ounce, according to Reuters technicals analyst Wang Tao.

Meanwhile, Asian shares rose yesterday on the back of firmer Wall Street earnings while expectations for increased Chinese stimulus helped take the edge off wider concerns about the worsening Sino-US trade dispute. Reuters.