Gold up on soft dollar, set for first weekly gain in four
By Eileen Soreng
Sept 20 (Reuters) - Gold prices edged higher on Friday and were set for their first weekly gain in one month, supported by a softer dollar and caution about developments in Sino-U.S. trade talks.
Spot gold XAU= was up 0.3% at $1,503.20 per ounce, as of 0353 GMT, and was on track for its first weekly gain in four, having risen nearly 1% so far this week.
U.S. gold futures GCv1 were also up 0.3% at $1,510.9 per ounce.
A weaker U.S. dollar is giving gold a little bit of an upward drift," Michael McCarthy, chief market strategist at CMC Markets said, adding that "prices are still very much in the middle of a trading range and pinned to $1,500 level."
The dollar nursed losses against most major currencies on Friday, as central banks in Switzerland and the UK refrained from cutting rates, while risk appetite ebbed on caution about U.S-China trade talks. USD/
"Investors are all waiting on any further developments in the trade negotiations as they move towards October meeting and that may provide next big driver for gold prices," McCarthy said.
U.S. and Chinese deputy trade negotiators resumed face-to-face talks for the first time in nearly two months on Thursday, trying to lay the groundwork for high-level talks in early October.
Gold prices have risen about 17% this year mainly on the back of a the U.S.-China trade tensions, concerns over the outlook for the global economy and the prospect of monetary easing by central banks.
The Fed had cut interest rates for the second time this year on Wednesday to help sustain economic expansion but gave mixed signals on future rate cuts.
The precious metal will remain supported as investors deliberate heightened market risks and accommodative economic policies for the near term, Phillip Futures analyst Benjamin Lu said in a note.
On the technical front, signals are mixed for spot gold as it is stuck in a narrow range of $1,488-$1,514 per ounce, according to Reuters technical analyst Wang Tao.
Elsewhere, palladium XPD= gained 0.7% to $1,634.74 per ounce, having earlier climbed to a fresh record peak of $1,635.55.
Platinum XPT= rose 0.5% to $942.00 per ounce and silver XAG= was up 0.6% at $17.88.
(Reporting by Eileen Soreng in Bengaluru; Editing by Subhranshu Sahu and Aditya Soni)