WASHINGTON (dpa-AFX) - Gold futures ended modestly higher on Wednesday, recovering after seven successive days of losses, as the dollar eased a bit and equities struggled for support on fresh concerns about global growth.
The latest batch of economic data out of Europe and the U.S. have turned out to be disappointing and the Organization for Economic Co-Operation & Development (OECD) has cut its forecasts for the global economy.
The dollar index dropped to 96.78 before regaining some lost ground. The index had settled at 96.78 on Tuesday.
Gold futures for April settled at $1,287.60 an ounce, down $2.90, or 0.2%, from previous close. However, gold prices turned weak after the Federal Reserve released its Beige Book.
Economic activity continued to expand in late January and February, according to the Beige Book.
The Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts, said ten districts reported slight-to-moderate growth, although Philadelphia and St. Louis reported flat economic conditions.
The Fed noted the prolonged partial government shutdown led to slower economic activity in about half of the districts.
On Tuesday, gold futures for April ended down $2.80, or 0.2%, at $1,284.70 an ounce.
Silver futures for May ended down $0.020, at $15.085 an ounce, while Copper futures for May settled lower by $0.0150, at $2.9185 per pound.
The Organization for Economic Co-Operation & Development (OECD) that cut forecasts for the global economy in 2019 and 2020, warning that trade disputes and uncertainty over Brexit would hit world commerce and businesses.
The OECD forecast that the world economy would grow 3.3% in 2019 and 3.4% in 2020.
In economic news from U.S., a report from payroll processor ADP showed U.S. private sector job growth slowed in February after an upwardly revised spike in January.
ADP said private sector employment increased by 183,000 jobs in February after soaring by an upwardly revised 300,000 jobs in January.
Economists had expected employment to climb by 189,000 jobs compared to the addition of 213,000 jobs originally reported for the previous month.
Data from the Commerce Department showed the U.S. trade deficit widened by more than anticipated in December, as imports jumped and exports slumped.
The Commerce Department said the trade deficit widened to $59.8 billion in December, nearly $2 million more than what was forecast, from a revised $50.3 billion in November.
The substantial monthly increase drove the U.S. trade deficit to its highest level since reaching $60.2 billion in October of 2008.
The trade deficit for 2018 was also the biggest since 2008, widening to $621.0 billion from $552.3 billion in 2017 as Trump ramped up his trade war with China.
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