Gold prices moved higher and snapped a four-session losing streak on Wednesday, as growing uncertainty about U.S.-China trade deal and rising tensions in Hong Kong due to the ongoing political unrest prompted investors to seek the safe-haven asset.
However, gold futures settled off the day’s highs as U.S. stocks recovered from early weakness after the Federal Reserve Chair Jerome Powell reiterated that the central bank is likely to leave interest rates on hold in the near future.
The dollar index was up marginally at 98.37, edging up from a low of 98.29.
Gold futures for December ended up $9.60, or about 0.7%, at $1,463.30 an ounce, after advancing to a high of $1,467.60 an ounce.
On Tuesday, gold futures for December ended down $3.40, or 0.2%, at $1,453.70 an ounce.
Silver futures for December ended at $16,913.00 an ounce, gaining $0.221 for the session. Copper futures for December settled at $2.6395 per pound, down 0.0060 from previous close.
The political unrest in Hong Kong escalated
After pro-democracy protesters stepped up a “blossom everywhere” campaign of roadblocks and vandalism across Hong Kong, the city’s security Chief John Lee cautioned that “unthinkable” consequences may come if violence continued.
Uncertainty about a potential trade deal between the U.S. and China weighed on stocks and pushed up gold prices.
The much anticipated speech by President Donald Trump at the Economic Club of New York on Tuesday failed to provide details about the state of trade talks between the U.S. and China.
Trump said a significant phase one trade deal with China “could happen soon” but stressed that he would only accept an agreement that is good for U.S. companies and workers, and added that tariffs on Chinese goods will be increased if China does not reach a trade deal with the U.S.
In economic news, the Labor Department’s report showed U.S. consumer prices rose by slightly more than anticipated in the month of October.
The report said the consumer price index climbed by 0.4% in October after coming in unchanged in September. Economists had expected consumer prices to rise by 0.3%.
Excluding food and energy prices, core consumer prices edged up by 0.2% in October after a 0.1% uptick in September. The uptick in core prices matched economist estimates.
The material has been provided by InstaForex Company – www.instaforex.com