Investing.com – Gold prices steadied Thursday, as the dollar gave up some of its gains, while easing trade-war concerns prompted traders to cut bearish bets on other metals.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange rose by $2.50, or 0.20%, to $1,246.90 a troy ounce.
Gold prices moved off seven-month lows as the dollar struggled to hold gains, hovering just above the flatline, after data showed timid growth in consumer prices last month.
The Labor Department said on Thursday its Consumer Price index rose just 0.1% last month after edging up 0.3% in May. That missed the economists' forecast for a 0.2% rise.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.02% to 94.50 amid positive wholesale inflation data Tuesday.
Dollar-denominated commodities such as gold are sensitive to moves in the dollar. A rise in the dollar makes gold more expensive for holders of foreign currency, reducing demand for the precious metal.
Yet safe-haven gold struggled to make a meaningful advance as risk-appetite turned positive on the prospect of renewed U.S.-China trade talks.
Bloomberg reported that U.S. and Chinese officials considered restarting the trade conversations, which could lead to a bilateral agreement.
Improved sentiment on the trade-war front comes just days after the White House issued a list late Tuesday of 10% tariffs on $200 billion worth of Chinese imports it will assess.
Easing trade concerns fueled demand for other metals as copper remained on track to snap a three-day losing streak.
Copper prices, rose 1.29% to $2.78, while zinc prices rose 1.01% to 2,583.25.
Aluminium prices fell 0.91% to 2,043.25, while Nickel futures rose 2.20%.
Silver futures fell 1.09% to $15.99 a troy ounce, while platinum futures rose 1.21% to $845.30.