Gold prices rose on Wednesday as lingering worries surrounding slowing global growth and rising trade tensions encouraged safe-haven demand for the precious metal.
Spot gold rose half a percent to $1,425.50 per ounce while U.S. gold futures were up as much as 1.5 percent at $1,428.55 per ounce.
Initial enthusiasm over the U.S.-China trade truce faded, with reports suggesting the U.S. Commerce Department’s enforcement staff was told this week that China’s Huawei should still be treated as blacklisted.
The U.S. Commerce Department imposed duties of more than 400 percent on steel imports from Vietnam, keeping trade tensions alive.
On the growth front, China’s private sector expanded marginally in June despite contraction in manufacturing, survey data from IHS Markit showed.
The Caixin composite output index fell to 50.6 from 51.5 in May, signaling
the weakest growth since last October.
The services Purchasing Managers’ Index dropped more-than-expected to 52.0 in June from 52.7 in the previous month as the U.S.-China trade conflict impacted business confidence rather heavily. The expected reading was 52.6.
Asian markets ended mostly lower today while European stocks hit a two-month high after International Monetary Fund Managing Director Christine Lagarde was nominated as the president of the European Central Bank.
She is expected to be broadly dovish on monetary policy while pressing fiscal authorities to play a more active role in promoting growth.
Lagarde would succeed Mario Draghi when his term expires at the end of October.
The material has been provided by InstaForex Company – www.instaforex.com