Gold prices have held steady as the long-bruising trade war between the US and China sees no deal in near term even as positive sentiments continued as the US President Donald Trump announced that the deal could be signed as early as this month but now it has been deferred investors' hopes remain dashed. Nonetheless, the upside in the bullion has been kept in check by a firmer dollar.
Spot gold was trading at $1,458.59 per ounce by 0356 GMT, while U.S. gold futures rose 0.4% to $1,459.10 per ounce.
In his Tuesday's speech, Trump said that the deal is close but no new details have been put forth and this has been providing a support to the yellow metal. Traders are wary of whether the Phase one deal will be reached.
In the dollar terms, it has been trading at its highest level in a month, which makes gold pricier in other currencies. Also, Hong Kong chaos which saw political unrest lent a support to the metal.
Back home, weak IIP data and other economic indicators including the start of the wedding season may likely lift up the price of gold which has corrected sharply after peaking to levels of more than Rs. 40,000 per 10 gm.
Gold of 22K and 24K were priced at Rs. 37160 and Rs. 38160 per 10 gm. Also gold on the MCX is priced at Rs. 37851, up 0.35% or Rs. 131.
Slowing economic growth, geopolitical risk and an easing interest rate cycle remain the reality," ANZ Bank said in a note. " All in all it is perceived that such factors will boost up the demand for gold through 2020.