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Gold Settles Modestly Lower For The Day, Sheds 3.2% In Week

Gold prices retreated after early gains on Friday, even as doubts about the prospects of a formal U.S.-China trade deal resurfaced after U.S. President Donald Trump said he has not agreed to cut tariffs on Chinese goods.

The dollar’s strength too weighed on the yellow metal. The dollar index, which advanced to 98.40, gaining in strength gradually, was last seen at 98.36, up 0.23% from previous close.

Gold futures for December ended down $3.50, or about 0.2%, at $1,462.90 an ounce.

On Thursday, gold futures for December ended down $26.70, or 1.8%, at $1,466.40 an ounce on news that China and the U.S. have agreed to roll back tariffs on each other’s goods.

For the week, gold futures shed about 3.2%.

Silver futures for December ended down $0.187 at $16.823 a ounce, while copper futures for December settled at $0.0455 at $2.6820 per pound.

Optimism about a potential U.S.-China trade deal waned after reports suggested that a plan to roll back tariffs on each other’s goods in phases has met opposition from some advisers to U.S. President Donald Trump.

In economic news, consumer sentiment in the U.S. has seen a slight improvement in the month of November, according to preliminary data released by the University of Michigan on Friday.

The report said the index of consumer expectations rose to 85.9 in November from 84.2 in October, while the current economic conditions index fell to 110.9 from 113.2.

The report said the consumer sentiment index inched up to 95.7 in November after rising to 95.5 in October. Economists had expected to index to tick up to 95.9.

A report from the Commerce Department showed U.S. wholesale inventories fell by slightly more than anticipated in the month of September, sliding by 0.4% after inching up by a downwardly revised 0.1% in August.

Economists had expected inventories to dip by 0.3% compared to the 0.2% uptick originally reported for the previous month.

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

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