Gold trading moderately higher today

Gold rose moderately, supported by the weakening of the US dollar and increased demand for safe-haven assets in response to the fall in world stock markets.

The US Dollar Index, showing the US dollar against a basket of six major currencies, was trading lower by 0.3%. Since gold prices are tied to the dollar, a weaker dollar makes the precious metal cheaper for holders of foreign currencies. "Gold prices have difficulties to sustain an upward movement, but also reluctant to move down, investors are waiting for new drivers", - said Georgette Boele of ABN AMRO.

Traders note that some investors have started to buy gold after world markets fell to 3-week lows in response to weak trade data from China, revived concerns about the state of the second-largest economy in the world.

"Noted an increase in purchases of physical gold in Asia, mostly from China and exchange-traded funds", - said one of the Chinese traders in precious metals.

A slight pressure on the gold had data on the US labor market, which increased the probability of a Fed rate hike until the end of the year.

The cost of the October futures for gold on COMEX rose to $ 1257.6 per ounce.