Gold Trades Steady as Positive Comments From Trump Improve the Market Sentiment
Early on Thursday, gold prices are trading steady after a weakness in the US dollar driven by weak ADP employment data which released on Wednesday. At the time of writing, GOLD is trading at a little above $1,475.
The US-China trade war continues to dominate the sentiment among gold traders, with the precious metal having soared to a near one-month high on Wednesday after Trump suggested that a resolution could happen only after the US presidential elections in late 2020. Gold prices steadied later in the session after Trump reassured markets with his comments indicating progress in talks with China.
A Bloomberg report also suggested that the US and China were close to finalizing the phase one trade deal, which quelled some of the tension in the markets. However, gold remained steady after the dollar weakened for the fifth consecutive trading session on the back of disappointing economic data.
According to the ADP report which released on Wednesday, the private sector in the US added only 67,000 jobs in November, the lowest in six months. Economists had expected a reading of 140,000 jobs instead. More disappointing was the ISM Non-Manufacturing PMI report which revealed a slower rate of expansion in the services sector in the US. The non-manufacturing PMI fell to 53.9 in November from 54.7 in the previous month, driving the US dollar weaker and supporting gold.
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