Bullion prices ended higher at Comex on Wednesday, 12 September 2018. Gold futures ended higher on Wednesday, as a pullback in the dollar on the back of a potential new round of trade talks between the U.S. and China lifted prices for the metal to the highest finish in two weeks.
December gold added $8.70, or 0.7%, to settle at $1,210.90 an ounce. December silver added 1% to $14.293 an ounce.
In electronic trading shortly after the release of the Federal Reserve's Beige Book, prices for the contract traded even higher at $1,213.30. The snapshot of U.S. activity revealed weaker growth in August as the overall domestic economy expanded at a “moderate pace.”
Early Wednesday, data showed that the U.S. producer-price index declined by 0.1% last month, contrary to the 0.2% increase expected by mrket. The drop in wholesale prices was the first since February 2017, but the booming U.S. economy has produced enough inflation to push the Fed into a somewhat more aggressive posture.
The policy-setting Federal Open Market Committee is set to conclude a two-day meeting on Sept. 26, with expectations that the FOMC will lift rates by a quarter of a percentage point.
Gold has also been buffeted by concerns that clashes between the U.S. and China could lead to slack in demand for the metal. Thus far tit-for-tat tariff disputes between Washington and Beijing have supported overall gains in the U.S. dollar, pressuring commodities that are typically priced in the currency.
The ICE U.S. Dollar Index eased by 0.5%, but has climbed about 2.9% year to date. |