Gold prices edge higher on weaker dollar, trade tensions

Gold prices edged higher on Thursday, as the dollar eased from 6-1/2-month highs hit earlier this week, with prices further supported by concerns over U.S.-China trade.

Spot gold was up 0.1 percent at $1,302.50 per ounce by 0344 GMT. It was headed for a monthly decline of about 1 percent, its biggest since February.

U.S. gold futures for June delivery were 0.1 percent higher at $1,303.20 per ounce.

"Gold is largely being influenced by how the dollar is moving and the dollar move overnight is a clear representation of why gold prices have risen this morning," said OCBC analyst Barnabas Gan.

The dollar index, which measures the greenback against a basket of six major currencies, fell 0.1 percent to 94.027.

A weaker dollar makes bullion cheaper for holders of other currencies.

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