WASHINGTON (dpa-AFX) - Gold futures moved higher on Thursday, extending gains to a seventh straight session, and settled at their best level since in over three-and-a-half months, as the dollar eased on rising hopes about a U.S. rate cut sometime soon.
Traders also sought the safe haven asset amid concerns about global growth due to trade tensions. A cautious mood ahead of the crucial jobs data, due on Friday, contributed as well to the yellow metal's uptick.
The dollar index dropped to a low of 96.78 in early trades today, and despite recovering to 97.06 subsequently, was still notably down from previous close of 97.32.
Gold futures for August ended up $9.10, or about 0.7%, at $1,342.70 an ounce, off the day's high of $1,344.20.
On Wednesday, gold futures for August ended up $4.90, or 0.4%, at $1,333.60 an ounce.
Silver futures for July ended up $0.114, at $14.905 an ounce, while Copper futures for July settled at $2.6505 per pound, gaining $0.0275 for the session.
On the trade front, American and Mexican officials claimed progress in immigration talks late Wednesday, but U.S. President Donald Trump tweeted that it was 'not nearly enough' and tariffs at the 5% level will begin on Monday, with monthly increases as per schedule, if no agreement is reached.
On U.S.-China trade issues, the International Monetary Fund feels that the tit-for-tat tariffs will cost $455bn (£357.5bn) in lost output next year - more than the size of South Africa's economy.
In U.S. economic news, data from the Labor Department showed initial jobless claims last week came in unchanged from previous week's revised level.
A report from the Commerce Department said U.S. trade deficit narrowed in the month of April.
The European Central Bank today left its interest rate unchanged and now expects interest rates to remain at the present level longer. Earlier, the bank expected rates to remain unchanged at least through the end of this year.
The ECB raised the growth and inflation outlook for this year, but trimmed the same for 2020.
Citing the latest ECB staff macroeconomic projections, ECB President Mario Draghi said in Vilnius, Lithuania, that the euro area growth forecast for this year was raised to 1.2% from 1.1% seen in March.
The outlook for next year was slashed to 1.4% from 1.6% and the forecast for 2021 was cut to 1.4% from 1.5%.
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