Gold Futures Tumble On Trade Talk Hopes, Strong Economic Data

Trading 05 sept 2019 Donner votre avis

Gold prices plunged sharply on Thursday, recording their biggest single session loss in nearly 3 years, as easing worries about political tensions, optimism about U.S.- China trade talks and some upbeat economic data prompted investors to seek riskier assets such as equities.

Gold futures for December ended down $34.90, or 2.2%, at $1,525.50 an ounce, the biggest single-session loss in terms of dollars, since November 11, 2016.

In percentage terms, gold futures' loss today was the biggest in nearly three months.

Silver futures for December ended down $0.740, or 3.8%, at $18.807 an ounce, a day after closing at a three-year high.

Copper futures for December settled at $2.6420 per pound, gaining $0.0470 for the session.

In economic news, private sector employment in the U.S. jumped by much more than expected in the month of August, according to a report released by payroll processor ADP on Thursday.

The report said private sector employment surged up by 195,000 jobs in August after climbing by a downwardly revised 142,000 jobs in July. Economists had expected employment to increase by about 149,000 jobs compared to the addition of 156,000 jobs originally reported for the previous month.

A report from the Institute for Supply Management showed a notable acceleration in the pace of growth in U.S. service sector activity in the month of August. The ISM's non-manufacturing index climbed to 56.4 in August, after falling to 53.7 in July. Economists had expected the index to inch up to 54.0.

Data released by the Commerce Department said factory orders surged up by 1.4% in July, after climbing by a downwardly revised 0.5% in June. Economists had expected factory orders to jump by 1% compared to the 0.6% increase originally reported for the previous month.

The Labor Department's data showed a slight uptick in first-time claims for U.S. unemployment benefits in the week ended August 31st.

On the trade front, the U.S. and China are reportedly planning to hold high level talks in early October.

"Both sides agreed they should work together and take practical actions to create favorable conditions for the negotiations," China's Commerce Ministry is reported to have said.


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