Gold edges higher on physical buying and short-covering
Bullion rises slightly but concern about US-China trade tensions casts a cloud over the market
London — Gold clawed higher on Thursday, propelled by a weaker dollar, short-covering and physical buying in Asia. The concern about new US trade tariffs on China, however, cast a cloud over the market. "The precious metals are witnessing a relief bounce, which coupled with the strong oversold conditions is leading to some short covering," said Gianclaudio Torlizzi, partner at consultancy T-Commodity in Milan. "The bottom is very close because I think the US dollar is close to reaching the top, together with the peak of the US economy." Spot gold was up 0.6% at $1,203.35/oz at 10am GMT, after rising 0.5% in the previous session. US gold futures added 0.6% at $1,209/oz. Gold has tumbled more than 12% from a peak of $1,365.23 in April. Present levels have recently invoked a lot of physical buying in not just active gold buying countries like India and China, but in Southeast Asia for investment purposes too, traders and analysts said. India’s gold imports more than doubled in August t...
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