By Karthika Suresh Namboothiri
BENGALURU (Reuters) - Gold prices climbed on Friday as the dollar fell back on expectations the U.S. central bank may pause interest rates hikes if the U.S. economy slows this year, while investors awaited news on progress in the Sino-U.S. trade talks.
Spot gold rose 0.4 percent to $1,290.84 per ounce as at 0310 GMT, heading for a fourth straight weekly gain. The yellow metal is up 0.4 percent so far this week.
U.S. gold futures were up 0.3 percent at $1,290.8 per ounce.
"There are concerns for the U.S. economy to slow down, perhaps towards the end of 2019 and into 2020, so the markets are pricing rate cuts."
The dollar slipped against other major currencies, after having rebounded from three-month lows on Thursday following Federal Reserve Chairman Jerome Powell's comment which suggested the central bank is not done tightening monetary policy just yet.
A partial U.S. government shutdown extended into its 20th day and provided little comfort to the U.S. currency, after President Donald Trump threatened on Thursday to use emergency powers to bypass U.S. Congress to pay for a wall on the U.S.-Mexico border.
"The (gold) market is holding back a little as they are concerned the equity market could rally significantly on trade war truce," Innes said.
Asian equities inched up to one-month highs, but the rally's momentum slowed partly as investors sought more clarity on whether the United States and China could make headways on their talks on trade as well as intellectual property rights.
"Once trade issues are resolved, the dollar is likely to remain suppressed, losing its appeal as a safe haven...Gold on the other hand would stand to benefit."
"Gold will likely approach the short term resistance of $1,310 per ounce, from where some profit-booking can be seen," said Religare Broking'S Sachdeva, adding that near term support can be seen at $1,275 per ounce.
Palladium 0.4 percent to $1,326.75 per ounce, and was up about 2 percent for the week.
Silver climbed 0.6 percent to $15.65. However, it was poised to snap three sessions of weekly gains.
Platinum was up 0.2 percent at $821.60 per ounce.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)