Investing.com -- Gold prices rebounded on Monday as the feelgood factor generated by Friday’s “phase-1” deal on resolving the U.S.-China trade dispute largely evaporated, sending money back into haven assets.
By 11:15 AM ET (1515 GMT), gold futures for delivery on Comex exchange were up 0.5% at $1,496.05 a troy ounce. Spot gold was up 0.2% at $1,490.80 an ounce.
Silver futures were up 0.7% at $17.67 an ounce while platinum futures were up 0.4% at $903.36.
Trading in the U.S. bond market was depressed by the Columbus Day holiday.
Physical buying of gold by portfolio investors continues apace: Bloomberg reported that ETFs added over 80,000 ounces of gold to their holdings on Friday, the 20th straight session of net buying.
In the futures market too, speculative net long positions edged up last week, according to CFTC data, but remained some 12% below the three-year highs they notched in September.
The environment for haven assets continued to be supportive, with uncertainty swirling around both the key macro issues of the day: the U.S.-China trade dispute and the resolution of Brexit. The prospect for a quick deal and smooth exit from the EU by the U.K. all but died at the weekend, after the EU dismissed the U.K.'s latest proposals for solving the Irish border issue as not clear enough.
In addition, the escalating military action in Syria, where rebel Kurds have now sought the support of President Assad’s forces in turning back the incursion by Turkey, has created another reason to hold safe assets like bullion.