Gold prices edged lower on Tuesday despite the dollar losing ground against some major currencies. With the U.S. and China set to sign a phase one trade deal and concerns about Middle East tensions easing further, investors appeared keen on seeking riskier assets.
Data showing notable growth in Chinese exports in the month of December also contributed to gold’s weakness.
The dollar index turned flat after displaying strength earlier in the day.
Gold futures for February ended down $6.00, or about 0.4%, at $1,544.60 an ounce, the lowest settlement in nearly two weeks.
On Monday, gold futures for February ended down $9.50, or 0.6%, at $1,550.60 an ounce.
Silver futures for March ended lower by $0.254 at $17.742 an ounce, while copper futures for March settled at $2.8735 per pound, gaining $0.0125 for the session.
China’s exports rose an annual 7.6% in December, marking the first gain in the country’s exports since July 2019 and the fastest growth rate since March 2019, official data showed. At the same time, imports in the month grew 16.3% from a year earlier.
In U.S. economic news, consumer prices increased by slightly less than anticipated in the month of December, according to a report released by the Labor Department.
The Labor Department said its consumer price index rose by 0.2% in December after climbing by 0.3% in November. Economists had been expecting another 0.3% increase.
In trade news, U.S. Treasury Department dropped China’s designation as a currency manipulator and China pledged to buy nearly an additional $80 billion of U.S. manufactured goods over the next two years.
The phase one U.S.-China trade deal is due to be signed at the White House on Wednesday. U.S. Trade Representative Robert Lighthizer told Fox Business that the Chinese translation of the deal’s text was almost done.
The material has been provided by InstaForex Company – www.instaforex.com