COMEX gold trades near $1205/oz after hitting a high of $1212.4/oz yesterday, the highest level since August 31. Gold is set to end the week with a 0.5% gain marking its first rise in three weeks.
Gold edged up on correction in US dollar index. The US dollar index trades near 94.5 levels after a 0.3% decline yesterday. The index hit a high of 95.564 earlier this week.
The US dollar weakened on mixed economic data and reduced safe haven buying amid prospect of trade talks. US inflation data released this week disappointed questioning Fed's stance of continuing with rate hikes.
China has received an invitation from the US to reopen trade talks and welcomes the move. However, President Donald Trump is boasting he has the upper hand in the burgeoning trade war and feels "no pressure" to resolve the feud. Meanwhile in China, the official China Daily said that while China was "serious" about resolving the stand-off through talks, it would not be rolled over, despite concerns over a slowing economy and a falling stock market at home. US and China are unlikely to bide under pressure hence market enthusiasm about trade talks may not persist.