By Karthika Suresh Namboothiri
BENGALURU (Reuters) - Gold prices climbed on Friday as the dollar retreated on expectations the Federal Reserve may pause interest rate 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 0.6 percent to $1,294.01 per ounce as at 0729 GMT, heading for a fourth straight weekly gain. The yellow metal is up 0.7 percent so far this week.
U.S. gold futures were up 0.5 percent at $1,294.3 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, having rebounded on Thursday from three-month lows helped by Federal Reserve Chairman Jerome Powell's comment suggesting 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.
"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 benefit."
"Gold will need some fresh news to trigger prices to break the $1,300 level bar. $1,299 would be a critical level for further upside with mild resistance at $1,310," said Hareesh V, head of commodity research at Geojit Financial Services.
Palladium climbed 0.2 percent to $1,324.90 per ounce, and was up about 2.5 percent for the week.
Silver rose about rose 1.1 percent to $15.73 per ounce, while platinum was up 0.6 percent to $824.60.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)