Gold prices edged higher on Wednesday, as the dollar weakened against some major currencies. Traders were largely refraining from making big moves ahead of Thanksgiving holiday.
Recent comments from the Federal Reserve chairman Jerome Powell and Vice Chairman Richard Clarida about growth and interest rates weighed on the dollar. While Powell warned of slowing demand abroad and fading fiscal stimulus at home and spoke about the impact of past rate hikes on the economy, Clarida said rates were currently near neutral levels. These comments suggest there may be a pause in monetary tightening next year.
Slightly fading hopes about a deal between the U.S. and China too prompted traders to pick up the yellow metal.
The Dollar Index was down by about 0.16% at 96.58.
Gold futures for December ended up $6.80, or 0.6%, at $1,228.00 an ounce, the highest settlement in about two weeks. On Tuesday, gold futures ended down $4.10, or 0.3%, at $1,221.20 an ounce, snapping a four-day winning streak.
Silver futures for December settled at $14.502 an ounce, up $0.233 over previous close. Copper futures for December ended up $ 0.280, at $2.7945 per pound.
As stocks recovered amid reports the Italian government would compromise with the European Union on certain aspects of its budget, the greenback slid a bit today. It was reported earlier in the day that the Italian Deputy Premier Matteo Salvini was willing to reduce the planned spending on a citizen's income and the unwinding of a previous pension reform.
However, subsequent reports suggest that the European Commission has rejected Italy's revised budget proposals and made a recommendation to adopt a disciplinary procedure against the country for excessive debt.
In U.S. economic news, a report from the Commerce Department said durable goods orders plunged by 4.4% in October following a revised 0.1% dip in September. Economists had expected orders to slump by 2.5% compared to the 0.7% increase that had been reported for the previous month.
According to a report from the Labor Department, first-time claims for U.S. unemployment benefits unexpectedly edged higher in the week ended November 17th. The report said initial jobless claims rose to 224,000, an increase of 3,000 from the previous week's upwardly revised level of 221,000. Economists had expected jobless claims to slip to 215,000 from the 216,000 originally reported for the previous week.
Meanwhile, existing home sales were up 1.4% to an annual rate of 5.22 million in October, after plunging by 3.4% to a rate of 5.15 million in September. Economists had expected existing home sales to jump by 1%.
The material has been provided by InstaForex Company -
www.instaforex.com