12.02.201906:47:00UTC+00Gold Inches Higher As Dollar Rally Stalls

Gold prices edged up on Tuesday and the dollar slid from a two-month high as investors await the outcome of another round of U.S.-China trade talks underway in Beijing.

The world's two largest economies will try to hammer out a deal before a March 1 deadline, after which U.S. tariffs on $200 billion worth of Chinese imports will increase to 25 percent from 10 percent.

Spot gold rose 0.4 percent to $1,313.10 per ounce after falling 0.4 percent the previous day. U.S. gold futures were up 0.35 percent at $1,316.55 per ounce.

Two days of high-level talks starting Thursday would involve U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He.

The dollar's weakness also comes as U.S. congressional negotiators reached an agreement to avoid a new government shutdown and provide finance for the construction of new barriers along the U.S.-Mexico border.