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Gold Settles Lower On Trade Deal Hopes, Retail Sales Data

Gold Settles Lower On Trade Deal Hopes, Retail Sales Data

After early gains, gold prices drifted lower on Friday, as higher bond yields, strong retail sales data and easing worries about trade war prompted traders to go for riskier assets such as equities.

The dollar’s recovery from lower levels too contributed to gold’s retreat.

Gold futures for December ended down $7.90, or about 0.5%, at $1,499.50 an ounce.

On Thursday, gold futures for December ended up $4.20, or 0.3%, at $1,507.40 an ounce.

For the week, gold futures lost about 1.1%.

Silver futures for December ended down $0.608, at $17.569 an ounce, while Copper futures for December ended higher by $0.0590, at $2.6995 per pound.

Sentiment in stock markets improved after China’s Ministry of Commerce revealed plans to exempt U.S. agricultural products, including soybeans and pork, from additional tariffs.

China will add the agricultural products to a list of 16 types of American-mad products granted tariff exemptions as a sign of goodwill ahead of the next round of trade talks.

Earlier, U.S. President Donald Trump had said that his administration will temporarily delay raising the rate of tariffs on $250 billion worth of Chinese goods.

A report released by the Commerce Department earlier in the day showed U.S. retail sales increased by more than expected in August thanks to a jump in auto sales.

The Commerce Department report said retail sales rose by 0.4% in August after climbing by an upwardly revised 0.8% in July.

Economists had expected retail sales to rise by 0.2% compared to the 0.7% increase originally reported for the previous month.

The stronger than expected retail sales growth came as sales by motor vehicle and parts dealers spiked by 1.8% in August after inching up by 0.1% in July.

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