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Gold Futures Recover After Early Setback, Settle Modestly Higher

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Gold Futures Recover After Early Setback, Settle Modestly Higher

Gold prices recovered after an early setback on Wednesday and settled modestly higher, riding on dollar’s weakness.

Global equities gained in strength amid easing worries about political tensions in the U.K., Hong Kong and Italy, and on mild hopes about U.S.-China trade talks.

The dollar index dropped to 98.45, giving up more than 0.55% from previous close, as equities moved higher after risk appetite improved on positive news from Britain, Hong Kong and Italy.

In Hong Kong, Carrie Lan has reportedly formally withdrawn an extradition bill that triggered months of unrest in the country. The bill, which would have allowed people in Hong Kong to be extradited to mainland China, had sparked widespread protests across Hong Kong.

Gold futures for December ended up $4.50, or about 0.3%, at $1,560.40 an ounce.

Post release of the Beige Book which said the U.S. economy expanded at a modest pace through the end of August, gold futures advanced to $1,562.00 an ounce.

On Tuesday, gold futures for December ended up $26.50, or 1.7%, at $1,555.90 an ounce.

Silver futures for December ended up $0.310, at $19.547 an ounce, while Copper futures for December settled at $2.5950 per pound, gaining $0.0670 for the session.

The Federal Reserve’s Beige Book noted continued concerns regarding tariffs and trade policy uncertainty but said the majority of businesses remain optimistic about the near-term outlook.

A report from the Commerce Department showed the U.S. trade deficit narrowed to $54.0 billion in July from a revised $55.5 billion in June.

Economists had expected the deficit to narrow to $53.5 billion from the $55.2 billion originally reported for the previous month.

The narrower trade deficit came as the value of exports climbed by 0.6% to $207.4 billion, while the value of imports edged down by 0.1% to $261.4 billion.

The material has been provided by InstaForex Company – www.instaforex.com