Gold prices pared gains while other metals rose Thursday, as investors reacted to reports of progress in trade relations between the U.S. and China. Gold for December delivery was recently up 0.2% at $1,506.80 a troy ounce after rising to around $1,532 a troy ounce earlier in the session.
China is looking to narrow the scope of its negotiations with the U.S. to only trade matters, putting thornier national-security issues on a separate track in a bid to break deadlocked talks, The Wall Street Journal reported.
Global trade worries have helped boost gold, a popular haven, to a six-year high in recent months, while also buoying other precious metals. Prices had gained earlier in the day after the European Central Bank’s decision to cut its key interest rate and start a large package of bond purchases to stimulate growth pulled bond yields lower. Gold struggles to compete with yield-bearing investments when yields rise, and becomes more alluring to investors when they decline. Hopes of a breakthrough in the trade impasse also boosted prices for platinum and palladium—precious metals that see heavy use in the automotive industry, which could see a lift if trade tensions ease. Palladium was recently up 3.2% at $1,607.20 a troy ounce while platinum was up 1.2% at $951.70 a troy ounce. In base metals, copper rose 1% to $2.6415 a pound. China is the world’s top consumer of copper, which is extensively used in manufacturing and construction. Meanwhile, oil prices fell after the Organization of the Petroleum Exporting Countries and its oil-producing allies put off any talk of further output reductions at a technical meeting Thursday. U.S. oil was recently down 1.5% to $54.90 a barrel. Brent crude, the global benchmark, was off 1.4% to $59.96 a barrel. Write to Ira Iosebashvili at firstname.lastname@example.org
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