Gold hovers near four-week peak on weaker US dollar, trade concerns

[BENGALURU] Gold edged up to hit a near four-week high on Tuesday (Jun 3), as a weaker US dollar and rising uncertainty over the US-China trade deal boosted demand for the safe-haven asset.

Spot gold inched up 0.1 per cent at US$3,381.13 an ounce, as at 0038 GMT, after hitting its highest level since May 8 earlier in the session.

The metal gained about 2.7 per cent in the previous session, marking its strongest daily performance in more than three weeks.

US gold futures was up 0.3 per cent to US$3,406.10.

The US dollar index touched a more than one-month low, making gold cheaper for buyers holding other currencies.

US President Donald Trump and Chinese President Xi Jinping will likely speak this week, White House said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions.

The European Commission said on Monday it would make a strong case this week for the United States to reduce or eliminate tariffs even after Trump said he would double import duties on steel and aluminium to 50 per cent.

The Trump administration wants countries to provide their best offer on trade negotiations by Wednesday as officials seek to accelerate talks with multiple partners ahead of a self-imposed deadline in just five weeks, according to a draft letter to negotiating partners seen by Reuters.

Meanwhile, Russia told Ukraine at peace talks on Monday that it would only agree to end the war if Kyiv gives up big new chunks of territory and accepts limits on the size of its army, according to a memorandum reported by Russian media.

Elsewhere, spot silver fell 0.4 per cent to US$34.67 an ounce, platinum rose 0.4 per cent to US$1,067.40 and palladium was up 0.2 per cent to US$990.76. REUTERS