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Gold Futures Settle Modestly Higher

Gold futures settled slightly higher on Wednesday, paring some early gains after equities found support on slightly easing concerns about trade war.

Weak retail sales and industrial growth data out of the U.S. and China, and tensions in the Middle East supported the yellow metal, while the dollar’s recovery from lower levels limited its gains.

The dollar index, which rose to 97.70, after falling to a low of 97.44 earlier in the day, was last seen hovering around 97.55, up slightly from previous close.

Gold futures for June ended up $1.50, or about 0.1%, at $1,297.80 an ounce, off the day’s high of $1,301.70.

On Tuesday, gold futures for June ended down $5.50, or 0.4%, at $1,296.30 an ounce.

Silver futures for July ended unchanged at $14.812 an ounce, while Copper futures for July settled at $2.7430 per pound, gaining $0.0190 for the session.

Data from the U.S. Commerce Department showed an unexpected drop in U.S. retail sales in the month of April.

The report said retail sales edged down by 0.2% in April after spiking by an upwardly revised 1.7% in March. Economists had expected retail sales to rise by 0.2% compared to the 1.6% jump originally reported for the previous month.

A report released by the Federal Reserve said industrial production in the U.S. unexpectedly showed a notable decrease in the month of April, falling by 0.5%, following a revised 0.2% uptick in March.

Economists had expected production to come in unchanged compared to the 0.1% dip originally reported for the previous month.

Utilities output plunged by 3.5% in April and manufacturing output slumped by 0.5%, while mining output surged up by 1.6%, the report said.

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