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Gold Futures Settle Modestly Lower

Gold Futures Settle Modestly Lower
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Despite disappointing GDP data from China, trade issues and doubts about the Brexit deal getting the U.K. lawmakers’ nod, gold prices edged lower on Friday.

The dollar was weak too, as rising possibility of further rate cuts by the Federal Reserve continued to weigh on the currency.

The dollar index kept edging lower and lower after opening flat at 97.61. The index was last seen at 97.31, down 0.3% from Thursday’s close.

Gold futures for December ended down $4.20, or about 0.3%, at $1,494.10 an ounce.

On Thursday, gold futures for December ended up $4.30, or 0.3%, at $1,498.30 an ounce, after surging up $10.50, or 0.7% a session earlier.

Gold futures gained 0.4% in the week.

Silver futures for December ended at $17.578 an ounce, down $0.034 from previous close, while Copper futures for December closed higher by $0.0385, at $2.6360 per pound.

China’s economy grew at the slowest rate in nearly three decades in the third quarter, raising pressure on policymakers to roll out more measures.

Data released by the National Bureau of Statistics showed China’s GDP grew 6% percent year-on-year in the third quarter after rising 6.2% in the second quarter. Growth was forecast to slow marginally to 6.1%.

However, industrial production in China advanced 5.8% annually in September after rising 4.4% in August and 4.8% in July. Retail sales also saw a surge, rising 7.8% in September, in line with expectations.

In U.S. economic news, the Conference Board’s leading economic index edged down by 0.1% in September after dipping by a revised 0.2% in August. Economists had expected the index to rise by 0.2% compared to the unchanged reading originally reported for the previous month.

Federal Reserve Vice Chairman Richard Clarida on Friday said the economy is facing “evident” risks, while inflation remains muted.

In a speech in Washington, Clarida stressed interest-rate policy was not on a preset course and policy makers would make decisions meeting-by-meeting. Officials would assess the risks and will act as appropriate.

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