Gold prices drop as trade tensions ease
On Friday gold prices traded lower as the ease of U.S.-China trade tensions, along with other positive signs, drove investors to riskier assets. Gold Futures for December delivery were down 0.09% at $1,523.85 per ounce on the Comex division of the New York Mercantile Exchange by 10:48 AM ET (02:48 GMT), dropping from this week’s high of $1,564.15.
China’s Ministry of Commerce confirmed that officials from Beijing and Washington agreed on a phone call this week. Stronger U.S. economic data also supported to shift to riskier assets.
Private payrolls grew by 195,000 in August, higher than the expected 140,000 bump that economists surveyed by Dow Jones had expected. It suggested that the economy sustained a moderate growth despite trade tensions, refuting fears of a recession. Developments in Hong Kong this week also played a part in weighing down demand for the safe-haven metal. The government announced to formally withdraw the bill that has caused social unrest for over two months.
Investors have turned to the yellow metal due to fears over how the trade war will worsen and how the Brexit plan will unfold in the U.K. Despite losses today, gold prices have still edged up more than 20% this year.
Meanwhile, oil prices gained Friday morning in Asia after crude oil inventory draw figures and trade talk progress. The EIA released an estimate saying that U.S. crude oil inventories had dropped by 4.8 million barrels in the week to August 30. Brent Oil Futures was up 0.13% at $61.03 a barrel, as of 12:40AM ET (04:40 GMT), while Crude Oil WTI Futures was up 0.12% at $56.37 a barrel.