On Thursday, spot gold prices rose marginally by 0.08 percent to close at $1320.6 per tonne. Prices continue their uptrend after the U.S. Federal Reserve paused their rate hike cycle. The Federal Reserve further stated that it might slowdown the rate hike cycle in 2019 considering the rising uncertainty about the global economic outlook. However, gains were restricted after optimism showed by Trump over reaching a trade deal with China, the two day meeting between the delegates witnessed substantial progress in the trade talks. Trump further added that he plans to meet President Xi Jinping soon which improved the risk appetite amongst investors, in turn decreasing the demand for the safe haven asset.
A halt in the rate hikes by FED and increasing worries over US – China trade tension might increase demand for the safe haven asset. On the MCX, gold prices are expected to trade higher today; international markets are trading marginally higher by 0. 67 percent at $ 1318.65 per ounce..