Gold prices recover from three-week low on softer US dollar
Gold prices inched higher in early Asian trade on Thursday, recovering from a three-week low hit in the previous session as the U.S. dollar eased.
Spot gold was up 0.2 percent at $1,216.23 an ounce, as of 0123 GMT, after three sessions of falls in a row. Prices fell to their lowest since Oct. 11 at $1,211.52 an ounce on Wednesday.
U.S. gold futures rose 0.2 percent to $1,217.8 an ounce.
The dollar index, which measures the greenback against a basket of six major currencies, was down 0.2 percent.
U.S. President Donald Trump has not “set in stone” any decisions on escalating tariffs on Chinese goods and may withdraw some duties if there are promising policy discussions with China, White House economic adviser Larry Kudlow said on Wednesday.
U.S. private sector payrolls increased by the most in eight months in October, suggesting overall job growth accelerated this month after Hurricane Florence weighed on restaurant and retail employment in September.
The strong jobs market is gradually putting upward pressure on compensation, with other data on Wednesday showing a solid increase in labor costs in the third quarter.
British Prime Minister Theresa May has struck a tentative deal with the European Union that would give UK financial services companies continued access to European markets after Brexit, the Times reported on Thursday.
Euro zone inflation accelerated last month, providing further rationale for the European Central Bank’s decision to dial back stimulus even as growth is slowing more sharply than most had forecast.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.12 percent to 754.06 tonnes on Wednesday from 754.94 tonnes on Tuesday.
The U.S. Mint sold 22,000 ounces of American Eagle gold coins in October, up 7.3 percent from the previous month, according to the latest data.
South Africa’s Impala Platinum (Implats) said on Wednesday it was in talks to sell its 1 Shaft operation in Rustenburg in a move to make its struggling mines profitable, sending its shares higher.
Source: Reuters
