(MENAFN- Khaleej Times) Gold prices edged higher for asecond session on Thursday as the dollar extended losses afterminutes of the latest Federal Reserve meeting hinted at a dovishapproach to interest rate hikes in the United States.
22k gold in Dubai is priced at Dh147.25 and buyers can buy 24k for Dh157.
Spot gold was up 0.2 percent at $1,295.16 per ounceat 0359 GMT, after gaining nearly 0.2 percent in the previoussession.
US gold futures for June delivery were up 0.4percent at $1,294.60 per ounce.
"The minutes had a little bit of an impact but not too much.
Gold is moving relative to the dollar," said Ronald Leung, chiefdealer at Lee Cheong Gold Dealers in Hong Kong.
The dollar lost momentum versus the yen and againstmajor rivals on Thursday after the minutes of the FederalReserve's last policy meeting were seen as dovish and US.
President Donald Trump proposed looking into imposing newtariffs on imported cars.
Although the central bank's minutes on Wednesday showedanother interest rate hike in the United States would bewarranted "soon", it also showed that the Fed would tolerateinflation rising above its target for a time.
While higher US rates tend to boost the dollar and weighon greenback-denominated gold, the metal can be used as a hedgeagainst rising inflation.
Meanwhile, the euro hovered near a six-month low against thedollar, weighed down by concerns over economic slowdown in thesingle currency bloc and political risks in Italy and Asianshares tread water as investors fretted about new setbacks inUS-China trade talks.
Trump also said on Wednesday he would know next week whetherhis summit with North Korean leader Kim Jong Un would take placeas scheduled, casting further doubts on plans for theunprecedented meeting.
The uncertainty surrounding markets had also helped goldprices push up, investors said. Gold is often seen as a safeinvestment during times of political and financial uncertainty,alongside the Japanese yen.
"With the trade picture looking increasingly cloudy... wecould see further yen strengthening and equity weakness which istypically bullish for gold," INTL FCStone analyst Edward Meirsaid in a note.
"A recovery back over the $1,300 per ounce mark could promptfurther short-covering," Meir added.
Among other precious metals, silver climbed 0.1percent to $16.44 an ounce, while platinum gained 0.7percent to $905.40 an ounce.
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