Gold Prices Rise In Cautious Trade

London (Sept 5)  Gold prices inched higher on Wednesday, although the upside remained limited amid dollar strength on concerns about international trade conflicts and rising inflation in emerging markets.

Spot gold was up 0.14% at USD1,194.38 an ounce after hitting its weakest level in more than a weak the previous day. US gold futures were marginally higher at USD1,200.10 an ounce.

Gold has historically performed well in periods of crisis. Financial turmoil has engulfed many developing countries this year because of worries about the impact of rising interest rates and escalating trade friction between the US and its key partners.

Turkey's inflation rate hit a 15-year high in August, fueled by a collapse in the lira. Argentina is facing an emergency to slash spending and save the national currency.

South Africa slipped into a recession for the first time since 2009, driven by weak performance in the agricultural sector.

Fresh US tariffs on another USD200 billion worth of Chinese goods could take effect after a public comment period ends on Thursday.

However, the yellow metal failed to sustain its position as the 'safe haven' and instead has lost to "dollar" thanks to strong US growth and expectations of more interest rate hikes.

AllianceNews

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