Press "Enter" to skip to content

Gold inches lower on trade optimism; all eyes on US GDP data

Gold prices inched lower on Friday due to increased risk appetite on hopes of an interim Sino-US deal being signed soon and as investors awaited the release of US gross domestic product data.


Spot gold edged 0.1 per cent lower to $1,478.00 per ounce by 0135 GMT. US gold futures fell 0.2 per cent to $1,482.00 per ounce.

US Treasury Secretary Steven Mnuchin said on Thursday the United States and China would sign their so-called Phase one trade pact at the beginning of January, adding that it would not be subject to any renegotiation.

China’s Finance Ministry unveiled a new list of import tariff exemptions for a duration of one year starting Dec. 26 for six chemical and oil products from the United States.

Asian shares firmed, close to the 18-month peak, as trade thinned in the run-up to Christmas and the market absorbed the positive trade update.

The dollar index , all set to gain for the first week in four, held steady against a basket of currencies, making gold cheaper for holders of other currencies.

In United States, economic data showed mixed signals as the initial jobless claims report was strong with applications for unemployment benefits slipping from a more than two-year high, while factory activity data for the Mid-Atlantic region was almost flat in December.

Prime Minister Boris Johnson unveiled what he called a radical government agenda on Thursday, setting his sights on a quick Brexit, future trade deals and on transforming Britain to repay the trust of voters who handed him a landslide election victory.

Elsewhere, palladium rose 0.4 per cent to $1,943.74 per ounce. The metal prices had hit an all-time peak of $1,998.43 on Tuesday.

Silver slid 0.1 per cent to $17.03 per ounce, while platinum edged up 0.1 per cent to $934.60.

Source: Economic Times