By Anmol Choubey
(Reuters) – Gold prices jumped more than 1% on Thursday on bargain buying, a day after the bullion hit a one-week low amid optimism over the U.S.-China trade deal.
Spot gold rose 1.2% to $3,326.42 an ounce, as of 0453 GMT. U.S. gold futures gained 1.3% to $3,337.50.
Non-yielding bullion, traditionally seen as a hedge against global instability, hit a record high of $3,500.05 on Tuesday but fell below the $3,300 level on Wednesday.
“The kind of volatility we’re seeing this week is being driven by technicals and headline risk. But the fundamentals are strong, so dip buying is effectively a function of investors moving in on the basis of the bigger picture,” Capital.com’s financial market analyst Kyle Rodda said.
U.S. Treasury Secretary Scott Bessent said on Wednesday that the excessively high tariffs between the U.S. and China are unsustainable, and must be reduced before trade negotiations can proceed but said President Donald Trump would not unilaterally cut tariffs on Chinese imports.
Meanwhile, Trump is planning to spare carmakers from some tariffs following intense lobbying by industry executives over recent weeks, a report said.
“We sustain an uptrend until the Trump administration really backs away from its trade policy,” Rodda said.
The International Monetary Fund said on Wednesday the tariffs will slow growth and push debt higher across the globe.
The U.S. economic growth will surpass the IMF’s revised estimate of 1.8%, down from 2.7% in January, if the Trump administration’s policies are implemented, Bessent said.
The dollar index fell 0.2% against its peers, making greenback-priced bullion cheaper for overseas buyers. [USD/]
Spot silver fell 0.5% to $33.37 an ounce, platinum was down 0.5% at $967.45 and palladium lost 0.7% to $937.48.
(Reporting by Anmol Choubey and Anushree Mukherjee in Bengaluru; Editing by Rashmi Aich and Eileen Soreng)
