Nov 15 (Reuters) - Gold prices edged higher on Thursday as
the dollar weakened against the pound and euro after the British
cabinet approved the prime minister's draft Brexit plan.
Both spot gold and U.S. gold futures were up
0.1 percent, at $1,212.21 and $1,211.7 per ounce respectively at
0749 GMT.
"There's going to be a bid for gold provided the dollar
continues to slide," said Stephen Innes, APAC trading head at
OANDA in Singapore.
The dollar index , which measures the greenback
against a basket of six major currencies, traded at 96.84, off a
16-month high hit on Monday.
"We could see further slide in the dollar since we didn't
get any follow-through on the bullish consumer price index
effect," Innes added.
U.S. consumer prices increased by the most in nine months in
October amid gains in the cost of gasoline and rents, pointing
to steadily rising inflation that likely will keep the Federal
Reserve on track to raise interest rates again next month.
Meanwhile, Asian stocks rose on Thursday, supported by a
bounce in Chinese shares on news that Beijing has delivered a
written response to U.S. trade demands, raising hopes the two
sides could resume negotiations to end their trade war.
U.S. President Donald Trump and is expected to meet Chinese
President Xi Jinping on the sidelines of a G20 summit in
Argentina at the end of November and in early December.
Gold has fallen more than 11 percent from a peak in April as
investors flock to the dollar, with U.S.-China trade friction
unfolding against a backdrop of higher U.S. interest rates.
"If a good trade deal comes out of the upcoming talks
(between China and the United States) it could be positive for
gold," said Renisha Chainani, head of commodity and currency
research at Monarch Networth Capital.
"Gold prices have taken important support level at $1,200
and rebounded and I think this uptrend would continue."
Spot gold may extend its bounce to $1,223 per ounce,
following its stabilization around a support at $1,195, said
Reuters technical analyst Wang Tao.
Among other precious metals, silver was up 0.4
percent at $14.19 per ounce. The metal fell to its lowest since
Jan. 21, 2016 at $13.85 in the previous session.
Platinum rose 0.2 percent to $836.80 an ounce, while
palladium was 0.4 percent higher at $1,128.90 per ounce.
