Investing.com - Gold prices inched higher on Monday in Asia as traders digested the latest trade related developments.
U.S. gold futures rose 0.2% to $1,513.95 by 1:05 AM ET (05:05 GMT).
On Saturday, a government statement out of China said that Beijing had reached consensus with the U.S. in principle on issues related to a trade deal the two sides were negotiating.
China's Vice Premier Liu He had a phone call with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Friday where the two sides conducted “serious and constructive” discussions on “core” trade points, while discussing arrangements on the next consultation, the statement said.
But analysts at National Australia Bank sounded a note of caution.
"As much as the U.S.-China trade updates continue to point to a Phase 1 deal looking like a certainty, the contentious issues on whether the U.S. will cancel the planned December tariffs and remove some of the current tariffs in line with China's demands remains an unknown and if the issue is not resolved then a deal could easily collapse," they said.
The U.S. Federal Reserve’s decision to cut rates last week also remained in focus.
Some expected the yellow metal to trade significantly lower after the Fed indicated it will pause further rate cuts.
Instead, gold held to its $1,500 perch, proving few were willing to abandon the yellow metal.