Gold slips slightly but manages to hold above $1,300/oz

London — Gold edged lower on Monday as the dollar steadied, but the metal held above $1,300 as investors adopted a cautious approach while awaiting developments on the US-China trade front and Federal Reserve policy.

Spot gold eased 0.2% to $1,300.92 per ounce as of 11.23am GMT, having risen earlier in the session to $1,304.42, its highest since June 14 2018. The metal broke above $1,300 in the last session after failing to do so multiple times before.

US gold futures climbed 0.2% to $1,300.10 per ounce.

“With the news over the weekend that at least on a temporary basis, we have an end to the shutdown in the US, you’d expect gold prices to be a little bit softer,” Julius Baer analyst Carsten Menke said.

Late on Friday, US President Donald Trump succumbed to demands for reopening the government without securing $5.7bn from Congress for a border wall, a move that brought some relief to the wider markets.

The dollar index, a gauge of its value versus six major peers, held steady. The dollar also gained from some limited safe-haven flows due to the US-China trade spat, denting the appeal of dollar-priced bullion.

Gold is hovering around the much-discussed $1,300 psychological resistance, tracking back from which may kindle some jitters among investors, Capital Economics analyst Ross Strachan said.

Investors are bracing for a busy week with the culmination of high-level trade talks between the US and China from January 30-31.