Gold prices moved higher on Friday, as the dollar weakened amid rising optimism about a reduction in U.S. interest rate later this month and another possible cut before the end of current year.
Fresh concerns over U.S.-China trade dispute after President Donald Trump accused China of breaking a promise it made on buying agricultural products from American farmers contributed as well to the safe haven asset’s rise.
The dollar index dropped to 96.81, losing about 0.25% from previous close.
August gold up $5.50, or 0.4%, to settle at $1,412.20/oz
On Thursday, gold futures pared early gains and settled lower by $5.80 or about 0.4%, at $1,406.70 an ounce, well off the day’s high of $1,429.40 an ounce.
Gold futures gained nearly 1% in the week.
Silver futures for September ended up $0.090, at $15.236 an ounce, while Copper futures for September settled at $2.6940 per pound, gaining $0.0065 for the session.
On the trade front, Trump tweeted accused China of breaking a promise it made on buying more agricultural products from American farmers. He wrote: “They have not been buying the agricultural products from our great Farmers that they said they would,” the president said on Twitter. “Hopefully, they will start soon.”
Fed Chair Jerome Powell indicated on Thursday that the U.S. central bank is prepared to cut interest rates to keep the economy in good shape.
He did not specifically state that a rate cut could be coming at the July meeting, but investors took his two days of testimony as strong evidence that it will occur.
In economic news, a report from the Labor Department said its producer price index for final demand inched up by 0.1% in June, matching the uptick seen in May. Economists had expected producer prices to come in unchanged.
Excluding food and energy prices, core producer prices climbed by 0.3% in June after rising by 0.2% in May. Core prices had been expected to show another 0.2% increase.
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