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Gold Prices Gain Despite New Progress In Trade Talks, Strong U.S. Job Data

Published 04/08/2019, 12:34 AM
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Investing.com - Gold prices gained on Monday in Asia despite a stronger-than-expected U.S. job data that showed employment leaping from a 17-month low.

Gold futures traded on the Comex division of the New York Mercantile Exchange was up 0.4% to $1,300.55 an ounce by 12:20 AM ET (04:20 GMT).

Gold prices started April lower after China’s Caixin index suggested the country’s manufacturing sector was recovering from a sharp slowdown.

Meanwhile, reports that Washington and Beijing have resolved most of the issues in their long-running trade dispute lifted Asian shares. The safe-haven gold, which usually moves in directions opposite to risk assets, also rose despite the news.

The two sides were reportedly still haggling over how to implement and enforce a trade agreement. Chinese official broadcast CCTV said there was “new progress” in trade talks that ended last Friday in Washington and Trump’s top economic adviser, Larry Kudlow, told CBS on Sunday that the two sides are “closer and closer” on a trade deal.

In other news, while not a directional driver, Bloomberg reported on Monday that China has expanded its gold reserves for the fourth straight month.

Citing data released on the website of the People’s Bank of China, the article said the central bank raised reserves to 60.62 million ounces in March from 60.26 million a month earlier.

China is both the world’s top gold producer and consumer.

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