WASHINGTON (dpa-AFX) - Gold futures ended at over 6-year high on Wednesday as the dollar stayed subdued amid speculation about a rate cut sometime soon and on lingering concerns over trade tensions.
The appointment of IMF Managing Director Christine Lagarde as the new President of the European Central Bank and disappointing economic data out of Asia and the U.S. contributed as well to the rise of the yellow metal.
Lagarde would succeed Mario Draghi when his term expires at the end of October.
The dollar index declined to a low of 96.59 in late morning trades before recovering to 96.79, netting a marginal gain.
Gold futures for August ended up $12.90, or 0.9%, at $1,420.90 an ounce, after rising to a high of $1,441.00 earlier in the session.
Silver futures for September ended up $0.098, at $15.336 an ounce, while Copper futures for September settled with a gain of $0.0190, at $2.6830 per pound.
The euphoria over the U.S.-China trade truce that buoyed up equities faded after reports suggested the U.S. Commerce Department's enforcement staff was told earlier this week that China's Huawei should still be treated as blacklisted.
Meanwhile, the U.S. Commerce Department has imposed duties of more than 400% on steel imports from Vietnam.
In U.S. economic news, a report from payroll processor ADP showed private sector job growth reaccelerated in the month of June but still came in below economist estimates.
The report said private sector employment climbed by 102,000 jobs in June after rising by an upwardly revised 41,000 jobs in May. Expectations were for an increase of 140,000 jobs in the month.
Data released by the Labor Department said initial jobless claims in the U.S. dipped to 221,000, a decrease of 8,000 from the previous week's revised total of 229,000.
A report from the Institute for Supply Management said U.S. service sector growth slowed to a nearly two-year low in the month of June, with its non-manufacturing index dropping to 55.1.
According to a report from the Commerce Department, new orders for U.S. manufactured goods fell by a more than expected 0.7% in May, after plunging by a revised 1.2% in April.
Another report from the Commerce Department showed the U.S. trade deficit widened by more than anticipated in the month of May, as the value of imports jumped by much more than the value of exports.
The report said the trade deficit widened to $55.5 billion in May from a revised $51.2 billion in April.
Economists had expected the trade deficit to widen to $54.0 billion from the $50.8 billion originally reported for the previous month.
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