Gold Futures Settle Lower Again

New York (Feb 4)  Gold prices edged lower on Monday, extending losses from previous session, with upbeat US jobs data and optimism about US-China trade talks prompting traders to look for riskier assets.

Even as recent data from China suggested that the world's second largest economy is slowing down, a bigger than expected jump in US non-farm payroll employment and encouraging data on US manufacturing activity eased concerns about US economic growth.

A stronger dollar too contributed to gold's weakness.

The dollar index was up by about 0.3% at 95.57, after rising to a high of 95.66.

Gold futures for April ended down USD2.80, or about 0.2%, at USD1,319.30 an ounce.

On Friday, gold futures ended lower by USD3.10, or 0.2%, at USD1,322.10 an ounce.

Silver futures for March settled at USD15.886 an ounce, down USD0.045 for the session.

Copper futures for March ended down USD0.0215, at USD2.7945 per pound.

Markets across the globe are now awaiting further developments on Brexit and the US-China trade dispute.

Although both US and China claimed discussions between the two countries were progressing well, negotiations between them ended without concrete results last week.

The focus now will be on the next round of talks between officials of the two countries. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to China in mid-February for the next round of talks, according to Xinhua.

Meanwhile, on the Brexit front, discussions on an alternate arrangement to the Irish backstop have begun today between British MPs and Brexit Secretary Steve Barclay. Prime Minister Theresa May is scheduled to travel to Northern Ireland on Tuesday to reassure businesses that the government is committed to maintaining an open border after Brexit.

AllianceNews