Investing.com – Gold prices rebounded on Wednesday after declining more than 1% a day earlier as the dollar took a pause from its climb this week and investors prepared for a slew of events at the end of the week.
At 12:06 PM ET (16:06 GMT), for December delivery on the Comex division of the New York Mercantile Exchange fell $3.60, or 0.30%, to $1,202.70 a troy ounce.
Meanwhile, the , which measures the greenback’s strength against a trade-weighted basket of six major currencies, gained 0.47% to 95.52.
The dollar appeared to take a breather as market participants waited to see if U.S. President Donald Trump would slap tariffs on an additional $200 billion worth of imports from China as soon as Thursday, which would ratchet up the trade row with Beijing.
A weaker greenback makes the dollar-denominated metal more affordable for holders of foreign currencies.
Data overnight showed that in China slowed in August, indicating that the trade dispute with the U.S. is hitting demand.
on Wednesday, with Trump threatening to leave Canada out of a new deal already negotiated with Mexico.
In U.S. economic data, the in July, registering its largest increase in three years, as exports of soybeans and civilian aircraft declined and imports hit a record high.
Markets were shifting gears to the American labor market with the ADP monthly report on and weekly on Thursday to be followed by the official August monthly employment report at the end of the week.
The consensus forecast is for the creation of last month, while the unemployment rate is expected to hold steady at .
With expectations pointing to another solid reading for the U.S. labor market, the report is not likely to move market expectations for the Federal Reserve to hike interest rates by a quarter point at the next policy meeting on Sept. 25-26.
Fed fund futures currently put the probability of an additional increase in December at nearly 76%, according to Investing.com’s .
Higher interest rates tend to weigh on demand for gold, which doesn’t bear interest, in favor of yield-bearing investments.
In other metals trading, gained 0.47% at $11.947 a troy ounce by 12:07 PM ET (16:07 GMT).
fell 0.70% to $960.70 an ounce, while sister metal traded up 0.60% at $782.90.
In base metals, rose 0.46% to $2.614 a pound.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Source: Investing.com
