Gold prices drifted lower on Monday as global stocks moved higher on increased risk appetite after positive comments from the U.S. and China about a trade deal and amid easing worries about Brexit.
Investors were looking ahead to the U.S. Federal Reserve’s upcoming monetary policy meeting. The Fed, which is scheduled to meet on Tuesday and Wednesday, is widely expected to cut interest rates by 25 basis points.
The dollar index eased to 97.67 in early trading Monday, and after rallying to 97.89, subsequently dropped to 97.72 in early afternoon trading.
Gold futures for December ended down $9.50, or about 0.6%, at $1,495.80 an ounce.
On Friday, gold futures for December inched up $0.60, to $1,505.30 an ounce after reaching an intraday high of $1,520.90 an ounce.
Silver futures for December ended down $0.050, at $17.876 an ounce, while copper futures for December settled at $2.6830 per pound, up $0.0075 from previous close.
In Brexit news, the European Union has granted a three-month extension to the United Kingdom to exit the bloc.
The announcement, made by European Council President Donald Tusk, came after a meeting between the 27 European ambassadors in Brussels, where they signed off on a third delay.
Tusk wrote on Twitter, “The EU27 has agreed that it will accept the U.K.’s request for a Brexit flextension until 31 January 2020. The decision is expected to be formalised through a written procedure.”
On the trade front, U.S. and Chinese officials reportedly said they are “close to finalizing” some parts of a phase one trade deal after high-level telephone discussions on Friday.
U.S. President Donald Trump has said he plans to sign the deal with Chinese President Xi Jinping at a summit in Chile next month.
The material has been provided by InstaForex Company – www.instaforex.com