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Gold prices inch up

Gold prices edged up on Thursday as the dollar weakened despite another round of tit-for-tat tariffs in the China -U.S. trade dispute.

Spot gold had climbed 0.1 percent to $1,204.69 an ounce by 06:28 GMT.

U.S. gold futures were up 0.1 percent at $1,209.30 an ounce.

The dollar index, which measures the greenback against a basket of six major currencies, was down 0.1 percent.

China and the United States plunged deeper into a trade war on Tuesday after Beijing added $60 billion of U.S. products to its import tariff list in retaliation for President Donald Trump’s planned levies on $200 billion worth of Chinese goods.

Asian stocks rose and U.S. Treasury yields hovered near four-month highs on Wednesday, as investors looked past the latest escalation in the U.S.-China trade conflict, seen by some market participants as less severe than expected.

Previous developments in the U.S.-China trade conflict had prompted investors to buy the U.S. dollar in the belief that the United States has less to lose from the dispute, making dollar-priced gold more expensive for non-U.S. buyers.

Bond traders are increasing bets the Federal Reserve will raise U.S. short-term interest rates into 2019 as the jobs market tightens and with inflation seen climbing above its 2 percent goal.

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