Investing.com - Gold prices gained in Asia on Thursday as investors noted January trade data on China showed a narrower than expected surplus even as imports soared.
Gold futures for February delivery on the Comex division of the New York Mercantile Exchange rose 0.08% to $1,315.70 a troy ounce.
China reported trade balance data with a $20.34 billion surplus, compared to a $54.10 billion surplus seen for January, data released on Thursday showed.
Exports rose 11.1%, compared to a 9.6% gain seen and up from 10.9% in December, while imports soared 36.9%, compared to a 9.8% rise expected, and a jump from 4.5% in December.
Overnight, gold prices fell to five-week lows as the dollar continued to advance amid a sharp uptick in Treasury yields.
The United States 10-Year rose to four-year highs sparking a move higher in the dollar, pressuring gold to five-week lows following news that the Senate agreed a budget deal.
Senate leaders reached a major budget agreement that would increase spending caps, Majority Leader Mitch McConnell said Wednesday.
Dollar-denominated assets such as gold are sensitive to moves in the dollar – A rise in the dollar makes gold more expensive for holders of foreign currency and thus, reduces demand.
Also weighing on the yellow metal was a tick lower in safe-haven demand amid easing geopolitical uncertainty following reports that German Chancellor Angela Merkel's Christian alliance and the Social Democrats (SPD) agreed a coalition deal, paving the way for a new government.