Gold flat as risk sentiment rises on trade optimism; set for a weekly rise

Friday,   06-Dec-2019   09:19 AM (IST)

Gold was flat on Friday, due to rise in risk sentiment after U.S. President Donald Trump's latest comments rekindled hopes of a trade deal with China, but dollar's weakness kept the bullion on track for a weekly rise. Spot gold was flat at $1,475.51 per ounce by 0120 GMT, U.S. gold futures were down 0.2% to $1,480.80. Bullion was still on track for a weekly gain of 0.8%, after it hit a one month high of $1,484 earlier this week. U.S. President Donald Trump said on Thursday trade talks were "moving right along", while Beijing reiterated their stance on withdrawal of the Dec. 15 tariffs as part of an interim deal to de-escalate their 17-month trade war. The U.S. trade deficit dropped to its lowest level in nearly 1-1/2 years in October. Initial jobless claims dropped to 203,000 for the week ended Nov. 30, the lowest since mid-April. The dollar index was set for a weekly decline, having dropped every day this week, making gold cheaper for holders of other currencies. Asian stocks edged higher on the back of positive trade indications from Washington, while oil sat near two-month highs after producers led by Saudi Arabia and Russia agreed on further output cuts. Warning that American democracy is at stake, House of Representatives Speaker Nancy Pelosi directed a House committee on Thursday to draft articles of impeachment against President Donald Trump, a historic step that sets up a fight over whether to oust him from office. Pro-democracy protesters were given permission to conduct a rally by the Hong Kong authorities this weekend, following their sweeping victory in local elections. Australia's Newcrest Mining Ltd raised its stake in Canadian miner Lundin Gold Inc , which owns a high-potential gold mine project in Ecuador, to 32% as it looks to increase its exposure in Ecuador. Palladium was flat at $1,872.17 per ounce, after hitting a record high of $1,876.54 in the previous session. Silver was flat at $16.94 per ounce and platinum  remained unchanged at $897.00.