Gold rises on softer dollar, fresh trade worries

Gold prices rose on Monday after three consecutive sessions of falls as the dollar eased amid fresh concerns of trade tensions between the United States and China.

Fundamentals
Spot gold was up 0.3 per cent at $ 1,327.71 per ounce as of 0105 GMT.

Gold fell 1.7 per cent last week in its biggest weekly drop since the week ended December 8, 2017, but climbed 1.7 per cent in January-March in its third straight quarterly gain.

US gold futures rose 0.4 per cent to $ 1,332.10 an ounce.

The dollar index , which measures the greenback against six other major currencies, eased 0.3 per cent to 89.928.

China has slapped extra tariffs of up to 25 per cent on 128 US products including frozen pork, as well as wine and certain fruits and nuts, in response to US duties on imports of aluminium and steel, the country’s finance ministry said.

US President Donald Trump said on Thursday he may hold up a trade agreement reached with South Korea until after a deal is reached with North Korea on denuclearization.

Russia expelled 60 US diplomats on Thursday and announced it would eject scores from other countries that have joined London and Washington in censuring Moscow over the poisoning of a spy.

Hedge funds and money managers upped their net long position in COMEX gold contracts in the week to March 27, US Commodity Futures Trading Commission data showed on Friday.

Gold discounts in India narrowed last week on an improvement in demand for weddings and hopes that retail purchases will rise next month on account of a key festival, while demand in the rest of Asia remained subdued due to higher prices.

International mining firms including Glencore and Randgold on Thursday proposed a sliding scale for royalty rates on key commodities mined in Democratic Republic of Congo as an alternative to a windfall tax.

Goldcorp Inc made the first gold deposit on Tradewind Markets’ new digitized trading platform, the companies said on Thursday, with 3,000 ounces of bullion from its Red Lake mine complex in Ontario.

South Africa’s Gold Fields will buy a near 50 per cent share of Asanko Gold Inc’s Ghana subsidiary and take a stake in the Canadian miner in a $ 202.6 million deal, it said on Thursday.

Canada’s Eldorado Gold Corp , filed a new technical report for its contentious Skouries gold mine project in Greece on Thursday, which said it “significantly” reduces the development’s environmental footprint.