logo
Plus   Neg
Share
Email

Gold Settles Notably Lower As Equities Rise On Trade Talks Hopes

Gold prices drifted lower on Thursday as riskier assets such as equities gained in strength amid rising optimism about progress in U.S.-China trade negotiations.

The dollar lost ground amid speculation the Federal Reserve will cut interest rates further.

Gold futures for December ended down $11.90, or about 0.8%, at $1,500.90 an ounce, after dropping to a low of $1,496.20 in mid morning trades.

On Wednesday, gold futures for December ended up $8.90, or 0.6%, at $1,512.80 an ounce.

Silver futures for December ended down $0.208, at $17.602 an ounce, while Copper futures for December settled at $2.6135 per pound, gaining $0.0455 for the session.

In trade news, U.S. President Donald Trump revealed he plans to meet with Chinese Vice Premier Liu He as part of high-level U.S.-China trade talks.

"Big day of negotiations with China. They want to make a deal, but do I? I meet with the Vice Premier tomorrow at The White House," Trump tweeted.

Meanwhile, Liu told Chinese state-run media Xinhua the Chinese delegation has come to the talks with "great sincerity and is willing to make serious exchanges with the U.S. on issues of common concern."

"On the basis of equality and mutual respect, China is willing to reach consensus with the U.S. through this round of consultations on issues of mutual concern to prevent further escalation and spread of friction," Liu said.

Earlier, a report in the South China Morning Post said the deputy-level trade talks did not progress any significantly and that the Chinese delegation might leave the U.S. a day earlier.

However, the White House has reportedly said that Chinese Vice Premier Liu He is still scheduled to leave only on Friday evening.

In economic news, data from the Labor Department said the consumer price index was unchanged in September after inching up by 0.1% in August. Economists had expected another 0.1% uptick.

Excluding food and energy prices, core consumer prices crept up by 0.1% in September after rising by 0.3% for three straight months. Core prices had been expected to rise by 0.2%.

Another report from the Labor Department said initial jobless claims dropped to 210,000 in the week ended October 5th, a decrease of 10,000 from the previous week's revised level of 220,000.

Economists had expected jobless claims to come in unchanged compared to the 219,000 originally reported for the previous week.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT
>