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Gold Futures Rebound After Recent Setback, End Modestly Higher

Gold Futures Rebound After Recent Setback, End Modestly Higher

Gold prices edged higher on Thursday, rebounding after posting their biggest single-day loss in nearly three weeks a day earlier

Gold found support after the U.S. market turned subdued, weighed down by the impeachment inquiry into President Donald Trump after a whistleblower complaint claiming the president abused the power of his office to solicit interference from a foreign country in the 2020 U.S. election.

A fairly steady dollar limited the yellow metal’s rise. The dollar index advanced to 99.17, rising about 0.13% from previous close.

Gold futures for December ended up $2.90, or about 0.2%, at $1,515.20 an ounce.

On Wednesday, gold futures for December ended down $27.90, or about 1.8%, at $1,512.30 an ounce, recording the biggest single-session fall in about three weeks.

Silver futures for December ended down $0.161, at $17.912 an ounce, while Copper futures for December settled at $2.5775 per pound, down $0.0345 from previous close.

According to a report from the Commerce Department, real GDP increased at an annual rate of 2% in the second quarter, unchanged from the previous estimate and in line with economist estimates.

The unrevised 2% GDP growth in the second quarter still reflects a notable slowdown compared to the 3.1% jump in the first quarter.

First-time claims for U.S. unemployment benefits crept slightly higher in the week ended September 21st, according to a report released by the Labor Department.

The report said initial jobless claims inched up to 213,000, an increase of 3,000 from the previous week’s revised level of 210,000. Economists had expected initial jobless claims to tick up 212,000 from the 208,000 originally reported for the previous week.

A report from the National Association of Realtors said pending home sales in the U.S. showed a bigger than expected rebound in the month of August, surging up by 1.6% to 107.3, after plunging by 2.5% to 105.6 a month earlier. Economists had expected pending home sales to climb by 0.9 percent.

In trade news, the U.S. and Japan have signed a limited trade deal, under which Japan will open new markets to about $7 billion in U.S. agricultural products.

Meanwhile, there is mild optimism about U.S.-China trade agreement after Trump said that a deal between the two countries could happen earlier than expected.

China’s commerce ministry reportedly said the two sides are in close communication about the next round of talks in October.

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