Gold prices climbed to the highest level in two weeks on Thursday as the dollar slipped and as the trade worries between the U.S. and China boosted the appeal of the metal as a safe haven asset.
Bullion prices traded higher for a second straight session at $1303.05 an ounce after hitting a high of $1303.44, the highest level since May 31.
The dollar index dropped to 93.31 despite the Federal Reserve’s interest rate hike overnight and hint to two more interest rate hikes this year.
The Fed opted to raise interest rates for the second time this year to 2.00 percent on Wednesday, referred to a possible two more hikes this year, and upgraded U.S. growth, inflation and unemployment outlook.
While gold that does not provide interest to its holders is sensitive to interest rate increases, it took advantage of the retreat in the green currency and the trade concerns.
U.S. President Donald Trump will meet with his top trade advisers later today to decide whether to activate tariffs on Chinese goods.
Meanwhile, there are some reports that Trump would impose tariffs on billion of Chinese goods on Friday, thereby giving support to refuges such as gold and the Japanese yen.
Recently, markets have been more affected by political events more than economic ones, especially the trade woes.
Regarding other precious metals, silver was 0.88 higher at $17.140 an ounce, platinum soared 0.48 percent to $906.80 and palladium added 0.40 percent to $1,017.55.
Later in the day, eyes will focus on the ECB monetary decision, where
investors will wait for any clues about the timing at which the central bank would
end its stimulus program.