2018.05.0302:16:00UTC+00Gold Prices Rise as U.S.-China Trade Talks in Focus

Gold prices increased for a second session on Thursday after the U.S. Federal Reserve held interest rates steady as expected at the end of a two-day policy meeting, while investors awaited U.S.-China trade negotiations.

Spot gold climbed 0.3 percent to $1,308.31 an ounce.

U.S. gold futures for June delivery were up 0.3 percent at $1,309.20 an ounce.

The Fed left its benchmark interest rates unchanged in a target range of between 1.50 percent and 1.75 percent. The central bank hiked rates in March and forecasts another two increases this year.

Investors also awaited the U.S.-China trade talks between U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He due on Thursday.

Gold demand reported its weakest start to the year in a decade, the World Gold Council said, as prices of the metal stagnated and the threat of rising interest rates led investors to seek better returns elsewhere.

Global gold demand totaled 973.5 tonnes in the January to March period, down seven percent year on year and the weakest first quarter since 2008. That coincided with a period of calm in the gold market, which saw prices hold within their narrowest range of any quarter in more than a decade.

Among other precious metals, spot silver increased 0.4 percent to $16.41 per ounce. Platinum rose 0.9 percent to $897.70 per ounce, while palladium added 0.5 percent at $894.24 per ounce.