Gold settles higher as economy and U.S.-China trade stay in focus
Gold futures rebounded modestly on Tuesday, as investors kept a close eye on consumer confidence and on U.S.-China trade talks.
Gold for December delivery GCZ19, -0.08% on Comex gained $3.40, or 0.2%, to settle at $1,460.30 an ounce, after opening largely flat, while December silver SIZ19, -0.21% edged 15 cents higher to $17.04 an ounce.
“The action today is probably rebounding off the recent lows,” said Matthew Pierce, director of research at The Wealth Consulting Group in Las Vegas. “Gold has been finding support around the $1,450-ish level, a couple of times since it eclipsed $1,500 an ounce this fall.”
Market players also were monitoring the tone among U.S. consumers ahead of Black Friday, the traditional start of the holiday shopping season, which kicks off the day after Thanksgiving.
While fresh data showed U.S. consumer confidence fell for the fourth month in a row in November, pulling the consumer confidence index down to 125.5 from a revised 126.1 in October, the overall picture of the U.S. economy still looks healthy.
“Consumers are feeling pretty good, which bodes well for the holidays and should be good for sales,” said Phil Flynn, senior market analyst at The Price Futures Group in Chicago, in an interview.
“But the biggest negative that we’ve see on metals this week,” has said, has been optimism over a partial agreement to resolve the U.S. and China trade dispute. “But having said that, we still don’t have a deal.”
U.S. President Donald Trump said Tuesday during an Oval Office event that Washington and Beijing were nearing a trade deal, while also offering support for Hong Kong after pro-democracy parties scored victories in weekend elections.
Top Chinese and U.S. negotiators agreed on talks toward a preliminary “phase one” deal, China’s Commerce Ministry said Tuesday. The ministry said Vice Premier Liu He, the country’s top negotiator, spoke by phone with U.S. Trade Rep. Robert Lighthizer and Treasury Secretary Steven Mnuchin — a conversation the official Xinhua News Agency described as focused on “solving issues regarding each other’s core concerns…”
Upbeat expectations around a trade deal helped contribute to a round of record closes for U.S. stocks on Monday. On Tuesday, the S&P 500 index SPX, +0.22% and Nasdaq Composite Index COMP, +0.18% were poised to set their 10th record close of November.
Federal Reserve Chairman Jerome Powell, in remarks Monday evening, outlined an optimistic view of the U.S. economy but signaled that low inflation would likely keep rates low.
Oil prices also edged slightly higher Tuesday amid trade optimism. West Texas Intermediate crude futures for January delivery CLF20, +0.17% were little changed at $58.06 a barrel on the New York Mercantile Exchange. January Brent BRNF20, +0.28%, the global benchmark, gained 14 cents, or 0.2%, to trade at $63.79 a barrel on ICE Futures Europe.
In other metals trade, January platinum PLF20, -0.75% rose 1.2% to $911.70 an ounce, while December palladium PAZ19, -0.40% gained 0.6% at $1,782.30 an ounce.
December copper HGZ19, +0.45% added 1.1% to $2.6775 a pound.
As seen on www.marketwatch.com, Written by William Wats