WASHINGTON (dpa-AFX) - Gold prices rose sharply on Friday, riding on a weak greenback, even as stock markets across the globe scored solid gains amid fresh optimism about U.S.-China trade talks and some upbeat corporate earnings reports.
The dollar turned subdued against most major currencies, with traders looking ahead to the Federal Reserve's monetary policy meeting next week. It is speculated that the Fed might leave interest rate unchanged or speak about pausing interest rate hike sometime soon.
The dollar index, which measures the currency against six major rivals, shed more than 0.7% at 95.84.
Spot gold rose to a over 7-month high, climbing past $1,300 an ounce mark.
Gold futures for April ended at $1,304.20 an ounce, gaining $18.30, or 1.4%.
On Thursday, gold futures ended down $4.30, or 0.3%, at $1,285.90 an ounce. For the week gold futures gained more than 1%.
Silver futures for March settled at $15.699 an ounce, up $0.399 for the session.
Copper futures for March ended up $0.845, at $2.7290 per pound.
Despite reports that U.S. Treasury Secretary Steven Mnuchin said the U.S. and China are making 'a lot of progress' in trade talks, markets are skeptical about the two nations striking a trade deal anytime soon.
On Thursday, U.S. Commerce Secretary Wilbur Rolls told CNBC that the U.S. is 'miles and miles' from a trade deal with China.
'Frankly, that shouldn't be too surprising,' Ross said in an interview on CNBC's 'Squawk Box,' noting the U.S. and China have 'lots and lots of issues.'
Meanwhile, there is some optimism about negotiations to end the government shutdown even though two separate proposals to re-open the government failed in the Senate on Thursday.
Worries about Eurozone growth have increased after ECB President Mario Draghi said on Thursday that risks to the euro area growth are now tilted to the downside, thanks to persistent uncertainties such as protectionism.
Draghi blamed a slowdown in external demand, due to both country and sector-specific factors, for the weaker-than-expected incoming data.
'While the impact of some of these factors is expected to fade, the near-term growth momentum is likely to be weaker than previously anticipated,' he said.
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