Gold prices gained on ground early Monday as the dollar slid against the other major currencies in Asia, but remained at its 4-month highs of above the 92 level.
The U.S. and China issued a long list of demands in Beijing on Friday, as the two nations attempted to resolve the trade dispute between them. China requested tariffs lifted, while the U.S. expressed concerns over intellectual property right infringement.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange was up $3.1, or 0.2%, to $1,317.9 a troy ounce by 12:16AM ET (04:16 GMT).
Meanwhile, the U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 92.30, down 0.13%. The greenback reached this year’s new high at 92.70 last Friday, then dropped to the 92.30 level on Monday morning. Despite the recent momentum, the dollar has lost 6.3% in a year.
Dollar-denominated assets such as gold are sensitive to moves in the dollar – a fall in the dollar makes gold less expensive for holders of foreign currency and thus increases demand for the precious metal.
In other precious metal trade, silver futures gained 0.34% to $16.575 a troy ounce, and platinum futures climbed 0.63% to $917.3 an ounce.