Gold Prices Hold At Two-week Highs On Weak U.S. Data

Gold prices held steady near two-week highs on Friday and headed for a weekly gain as weak U.S. data helped reinforce investor expectations that the Federal Reserve will cut borrowing costs next week.

Spot gold edged up 0.1 percent to $1,504.98 per ounce, while U.S. gold futures were up 0.2 percent at $1,507.75.

Growth concerns resurfaced after data released overnight showed new orders for key U.S.-made capital goods fell more than expected in September and shipments also declined.

Sales of new U.S. single-family homes fell in September, adding to speculation the Fed will continue to cut interest rates to bolster growth amid the headwinds from the long-drawn trade war with China.

Hopes faded for a resolution to the Sino-U.S. trade dispute after U.S. Vice President Mike Pence adopted a hard line in a speech Thursday laying out President Donald Trump’s China policies and reiterating U.S. support for protesters in Hong Kong.

On the Brexit front, British Prime Minister Boris Johnson conceded for the first time that he could not meet his Oct. 31 Brexit deadline and called for a general election.

The material has been provided by InstaForex Company – www.instaforex.com