Diamond News

Gold futures ended higher on Wednesday to post their first gain in four sessions, as traders kept an eye on U.S.-China tariff negotiations, developments around Brexit and economic data.

“Investors remain tense ahead of the U.S.-China trade talks later this week,” said Han Tan, market analyst at FXTM. “The outcome from the upcoming negotiations in Washington may well dictate whether gold will remain elevated above the $1500 psychological level for the rest of the year.”

Gold for December delivery on Comex GCZ19, +0.61%[1]  rose $8.90, or 0.6%, to settle at $1,512.80 an ounce, following losses in each of the last three sessions.

In electronic trading, shortly after minutes from the Federal Open Market Committee’s September meeting[2] showed that Fed officials had grown more worried about the economy, gold futures traded at $1,512.90 an ounce.

“The minutes showed that some Fed officials had become increasingly worried about a recession, but the markets had already assumed as much,” given Fed Chairman Jerome Powell’s recent announcement that the Fed would soon begin purchasing short-term Treasury bills again, said Brien Lundin, editor of Gold Newsletter.

Meanwhile, analysts tied a rebound by U.S. benchmark stock indexes and other assets perceived as risky to reports that China has expressed openness to a limited trade deal[3] ahead of high-level talks set to get under wayin Washington on Thursday.

Sentiment around negotiations has swung back and forth between optimism and pessimism, with pressure on equities late Tuesday tied to a U.S. State Department decision to put visa restrictions on Chinese officials they tied to abuse...

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