You are here
Gold prices dip on trade deal optimism, strong US jobs data
[BENGALURU] Gold prices slipped on Monday on signs that a US-China trade deal could be signed this month and as a string of strong economic data bolstered investors' appetite for riskier assets, taking some shine off the precious metal.
- Spot gold fell 0.2 per cent to US$1,511.27 per ounce by 0105 GMT, while US gold futures were up 0.2 per cent at US$1,514.10 per ounce.
- The United States and China on Friday said they made progress in talks aimed at defusing a nearly 16-month-long trade war that has harmed the global economy, and US officials said a deal could be signed this month.
- Markets took further optimism from some economic data last week that eased apprehensions of a slowdown fuelled by the long-drawn trade war between the world's two largest economies.
- In the latest addition, US job growth slowed less than expected in October, while hiring in the prior two months was stronger than previously estimated, data from the Labor Department showed.
- China's Caixin/Markit Manufacturing Purchasing Managers' Index for October rose to 51.7 from 51.4 the prior month, data showed on Friday, for a third straight month of expansion. Economists had expected a dip to 51.0.
- Asian shares rose to 14-week highs on Monday, as growing optimism over US-China trade talks and upbeat US job data boosted global investors' appetite for riskier assets.
- Last week, the Fed cut interest rates for a third time this year, but signalled there would be no further reductions unless the economy takes a turn for the worse.
- In Europe, the new head of the European Central Bank (ECB) Christine Lagarde will be giving her first speech in the role later in the day and markets expect she will stick to easy policy script left by her predecessor, Mario Draghi.
- The US dollar index, which tracks the greenback against a basket of six major rivals, was slightly down at 97.215.