WASHINGTON (dpa-AFX) - Gold prices rose to a two-week high on Friday with traders creating fresh positions amid optimism about U.S.-China trade talks.
A positive outcome from U.S.-China trade negotiations will significantly boost gold demand in China, the biggest market for the commodity.
After the conclusion of the two-day high level talks between U.S. and China officials in Beijing, Chinese President Xi-Jinping said today that talks will continue in Washington next week, raising hopes the two nations will agree on a deal sometime soon.
Gold prices advanced today, despite dollar's rise and gains for European and U.S. stocks.
The Dollar Index rose to a high of 97.20 before retreating to lower levels after data showed import prices to have weakened for the third straight month in January.
Gold futures for April ended up $8.20, or 0.6%, at $1,322.10 an ounce.
On Thursday, gold futures for April ended down $1.20, or 0.1%, at $1,313.90 an ounce. For the week, gold futures gained 0.3%.
Silver futures for March settled at $15.743, gaining $0.215 for the session.
Copper futures for March ended up $0.0245, at $2.7985 per pound.
Preliminary data from the University of Michigan showed a bigger than expected rebound in consumer sentiment in the month of February.
The report said the consumer sentiment index climbed to 95.5 in February after tumbling to 91.2 in January. Economists had expected the index to rise to 93.0. Consumer sentiment saw a notable deterioration in January.
A report from the Federal Reserve said industrial production in the U.S. unexpectedly decreased in the month of January, falling by 0.6% after inching up by a downwardly revised 0.1% in December.
Economists had expected production to tick up by 0.1% compared to the 0.3% increase originally reported for the previous month.
The unexpected drop in industrial production came as manufacturing output slumped by 0.9% in January after climbing by 0.8% in December.
Copyright RTT News/dpa-AFX