Gold surges with fears of slower global economic growth

Gold rose on Monday as the metal's appeal was boosted by fears of a slowdown in global economic growth and fog surrounding the US interest rate hike ahead of the G20 meeting and with a focus on trade tensions between China and the United States.

The spot price for gold was up 0.3% to $ 1226 an ounce. US gold futures edged up 0.4% to $ 1227.5 an ounce.

"People are moving some liquidity into gold, given the uncertainty about the pace of US interest rate hikes and the US-China trade war," said Brian Lan, managing director of Gold Silver Central in Singapore.

Silver surged 1.2% in spot trade to $ 14.41 an ounce and platinum gained 0.7% to $ 842.65. Palladium rose 1.3% to $ 1133.99 an ounce.

Prices were down nearly 3% in the previous session, the biggest one-day drop since Aug. 15.

Gold has moved in a tight range of about $ 13 this week, partly because of the Thanksgiving holiday in the United States.

The reading of growth in euro-zone activity was much weaker than expected this month as exports fell sharply, affected by a global economic slowdown and a US-led trade war.

Market watchers are now looking forward to the G20 summit in Argentina at the end of this month. Chinese President Xi Jinping is expected to hold talks with his US counterpart Donald Trump.

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