Bengaluru — Gold prices edged higher on Friday as optimism over US-China trade talks pressured the dollar, but signs of the US Federal Reserve raising interest rates again in 2019 capped gains. Spot gold inched 0.1% higher to $1,324.59/oz at 4.08am GMT. The metal was headed for a second consecutive weekly rise, up almost 0.3%. The precious metal had hit a 10-month high on Thursday, but later erased the gains. US gold futures were subdued at $1,327.70/oz. “On a day-to-day basis, gold is a function of changing currency markets and the US dollar. Medium outlook is a lot more to do with geopolitical issues and yields,” said Kyle Rodda, a market analyst with IG Markets. The dollar index against a basket of six major currencies was set to decline about 0.3% this week, which could be its biggest weekly fall in a month. “The fact that gold was overbought-driven very much by a new yield environment and tensions around the world has helped keep gold prices elevated,” Rodda said. Gold had hit ...
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