Gold Trades Firm To Over Two-Week High On US-China Trade Deal Hopes

In the international market, gold prices firmed to over two-week high after the US dollar weakened on hopes of the likely US-China trade deal.

Spot gold gained 0.1% to trade at $1,322.41 per ounce as of 0747 GMT. The precious metal in the earlier trade neared the 9-month peak price of $1,326.20 per ounce. US gold futures rose 0.3 percent to $1,326.1 an ounce.

The progression of the US-China trade deal has capped the appetite for the US dollar and thus has lent support to gold. Also, as during the trade dispute, the US dollar was taken to as a safe-resort, investors are now shifting away from the greenback given the high likelihood of the US-China trade deal.

The US-China trade deal will resume this week in Washington. Further on Friday, the US President reiterated that he may extend the deadline of March 1 for a deal and also keep a check on tariffs on Chinese goods from rising.

Also, minutes from the January's Fed minute which are due to be released on Wednesday, will provide the direction and quantum of rate hike or not this year.

However, in the domestic market gold traded with only marginal gain of Rs. 10 per gram each and quoted at Rs. 32,460 and Rs. 35,420 for 22K and 24 K per 10 gm gold.

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