Gold prices recover after a 2% fall as economic reports ease fears
Gold prices recovered on Wednesday after a 2% fall in the previous sessions as traders embraced risk after the latest news in trade.
U.S. Gold Futures went up 0.2% to $1.486.95 by 12:30 AM ET (04:30 GMT).
Various news outlets reported within the week that U.S. and China were closing in on efforts to sign a partial trade deal. This was followed by the U.S. administration reportedly prepared to repeal its September increase in tariffs on Chinese imports.
The U.S. also reported a better-than-expected ISM non-manufacturing data for October, which had eased some fears of global economic slowdown.
“As soon as you saw those ISM numbers, you had to get out of gold,” said Phillip Streible, senior market analyst at RJO Futures. “The better-than-expected data has created some upbeat sentiment among investors and that is hurting gold.”
Streible also added that last week’s Federal Reserve monetary policy meeting factored in limiting the losses of gold prices.