2019.10.1407:20:00UTC+00Gold Prices Rise As Trade Deal Optimism Wanes

Gold prices rose on Monday as a lack of clarity on U.S.-China trade ties pushed investors back to safe havens.

Spot gold rose half a percent to $1,495.32 per ounce, after having fallen 1 percent last week. U.S. gold futures were up 0.7 percent at $1,499.35 per ounce.

The U.S. and China reached a phase one deal late on Friday, but scant details about the deal cast doubts over the durability of the partial preliminary deal.

The deal hardly touches on the real sticking points of technology transfer and intellectual property theft.

Analysts warned that negotiations could break down again before the phase one agreement is drafted.

Lingering Brexit uncertainty and weak Chinese data also rekindled investor worries about slowing economic growth.

Britain and the European Union said on Sunday a lot of work remains to be done to secure an agreement on Britain's departure from the bloc.

Official data showed China's exports declined more than expected in September reflecting weak global growth and trade disputes with the U.S. administration.

In dollar terms, exports fell 3.2 percent year-on-year in the month, the General Administration of Customs said. This was bigger than the expected 3 percent decrease and prior month's 1 percent fall.

At the same time, imports decreased 8.5 percent annually versus the expected decline of 6 percent. As a result, the trade surplus increased to $39.65 billion from $34.83 billion a month ago.