Gold was trading close to a more than one-week low yesterday weighed by a stronger dollar but uncertainties around the Sino-US trade spat and concerns about slowing global growth supported the metal above the key $1,300 level.
Spot gold was up 0.07 percent at $1,306.76 per ounce by 7:42 a.m. ET, after touching its lowest since January 29 at $1,302.11. Prices fell 0,7 percent in the previous session in their biggest one-day drop since January 18.
US gold futures were down 0,29 percent at $1,310.60.
“Despite concerns of a slowing global economic growth, it seems the dollar is providing some headwinds for gold at this stage,” said Ross Norman, chief executive at Sharps Pixley.
“Effectively this type of correction is not a bad thing but broadly speaking, the bull run is very much in place.”
The extent of the current slowdown in the global economy was illustrated as India unexpectedly cut its interest rates and data showed Germany’s economy slowed in December, underscoring fears about a broader slump in Europe.