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PRECIOUS-Gold inches lower on trade optimism; all eyes on U.S. GDP data

Published 12/20/2019, 10:00 AM
Updated 12/20/2019, 10:08 AM
© Reuters.  PRECIOUS-Gold inches lower on trade optimism; all eyes on U.S. GDP data
XAU/USD
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XPD/USD
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Dec 20 (Reuters) - Gold prices inched lower on Friday due to
increased risk appetite on hopes of an interim Sino-U.S. deal
being signed soon and as investors awaited the release of U.S.
gross domestic product data.

FUNDAMENTALS
* Spot gold XAU= edged 0.1% lower to $1,478.00 per ounce
by 0135 GMT. U.S. gold futures GCv1 fell 0.2% to $1,482.00 per
ounce.
* U.S. Treasury Secretary Steven Mnuchin said on Thursday
the United States and China would sign their so-called Phase one
trade pact at the beginning of January, adding that it would not
be subject to any renegotiation. * China's Finance Ministry unveiled a new list of import
tariff exemptions for a duration of one year starting Dec. 26
for six chemical and oil products from the United States.
* Asian shares firmed, close to the 18-month peak, as trade
thinned in the run-up to Christmas and the market absorbed the
positive trade update. MKTS/GLOB
* The dollar index .DXY , all set to gain for the first
week in four, held steady against a basket of currencies, making
gold cheaper for holders of other currencies. USD/
* In United States, economic data showed mixed signals as
the initial jobless claims report was strong with applications
for unemployment benefits slipping from a more than two-year
high, while factory activity data for the Mid-Atlantic region
was almost flat in December. * Prime Minister Boris Johnson unveiled what he called a
radical government agenda on Thursday, setting his sights on a
quick Brexit, future trade deals and on transforming Britain to
repay the trust of voters who handed him a landslide election
victory. * Elsewhere, palladium XPD= rose 0.4% to $1,943.74 per
ounce. The metal prices had hit an all-time peak of $1,998.43 on
Tuesday.
* Silver XAG= slid 0.1% to $17.03 per ounce, while
platinum XPT= edged up 0.1% to $934.60.

DATA/EVENTS (GMT)
0930 UK GDP QQ, YY Q3
1200 Brazil IPCA-15 Mid-Month CPI Dec
1330 US GDP Final Q3
1500 US Consumption, Adjusted MM Nov
1500 US U Mich Sentiment Final Dec
1500 EU Consumer Confidence Flash Dec

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