Gold prices moved higher on Thursday as the dollar weakened following an interest rate cut, and global stocks drifted down amid uncertainty about the U.S. and China agreeing on a long term trade deal anytime soon.
The dollar index dropped to 97.22, its lowest level in about five months. It subsequently edged up to 97.36, still down by about 0.3%.
Gold futures for December ended up 18.10, or about 1.2%, at $1,514.80 an ounce, the highest settlement in about five weeks.
On Wednesday, gold futures for December ended at $1.496.70 an ounce, gaining $6, or about 0.4%.
Silver futures for December ended up $0.200 at $18.067 an ounce, while Copper futures for December settled at $2.6380 per pound, down $0.0480 from previous close.
On Wednesday, the U.S. Federal Reserve cut interest rates for the third time this year, as widely expected, citing weak inflation outlook and global growth concerns.
After cutting rates by 25 basis points, Federal Reserve officials said they’d need to see a marked and persistent rise in inflation before hiking borrowing costs in the future.
In economic news, the Labor Department’s data showed a modest increase in first-time claims for U.S. unemployment benefits in the week ended October 26th.
The report said initial jobless claims rose to 218,000, an increase of 5,000 from the previous week’s revised level of 213,000. Economists had expected jobless claims to inch up to 215,000 from the 212,000 originally reported for the previous week.
According to a report from the Commerce Department, personal income and spending in the U.S. both rose in line with economist estimates in the month of September.
The report said personal income increased by 0.3% in September after climbing by an upwardly revised 0.5% in August. Economists had expected personal income to rise by 0.3%.
Meanwhile, personal spending edged up by 0.2%, matching the revised uptick seen in August.
MNI Indicators released a report on Thursday showing the Chicago business barometer tumbled to 43.2 in October from 47.1 in September. Economists had expected the index to inch up to 48.0.
With the unexpected decrease, the Chicago business barometer slumped to its lowest level since December of 2015.
The material has been provided by InstaForex Company – www.instaforex.com