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Gold rises on hopes of Fed pause; trade talks in focus


(Reuters) - Gold prices inched up on Thursday on expectations that the will hold rates steady this year, while investors hoped for developments in trade talks between and


Spot gold was up 0.2 percent at $1,308.20 per ounce, as of 0105 GMT.

U.S. gold futures were down 0.3 percent at $1,311.

U.S. consumer prices were unchanged for a third straight month in January, leading to the smallest annual increase in inflation in more than 1-1/2 years, which could allow the Federal Reserve to hold interest rates steady for a while.

Several Federal Reserve officials have indicated that they will support a pause in interest rate hikes from to assess its impact in

Risk sentiment has remained high over the last 48 hours in the financial markets on rising expectations of a breakthrough in the trade impasse between and which has led to a modest rally in global equities.

said talks with went well on Wednesday, as the world's two largest economies try to hammer out an agreement.

rejected a draft 2019 budget on Wednesday after Catalan separatists turned their back on the government, pushing the country close to an early national election amid an increasingly fragmented political landscape.

on Wednesday said it expects gold prices to average $1,330 per ounces in 2019 and $1,415 per ounces in 2020.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped 0.26 percent to 796.85 tonnes on Wednesday from 798.89 tonnes on Tuesday.

on Wednesday forecast a double-digit jump in gold output this year, underscoring the growth potential of the world's largest publicly traded after it bought rival last month.

Russia's said on Wednesday that had produced 314.42 tonnes of gold and 1,119.95 tonnes of silver in 2018.

The has no intention of selling the of Italy's gold reserves to plug budget holes, a prominent lawmaker of the ruling said on Wednesday.

A deficit in the palladium market that has driven prices of the to record highs will widen dramatically this year, specialist materials company said in a report on Wednesday.

(Reporting by in Bengaluru, Editing by Sherry Jacob-Phillips)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, February 14 2019. 06:59 IST