Investing.com - Gold prices rebounded on Wednesday after falling 2% in the previous session as markets embraced risk following the latest trade news.
U.S. Gold Futures inched up 0.2% to $$1,486.95 by 12:30 AM ET (04:30 GMT).
Multiple media reported this week that the U.S. and China are close to signing a partial trade deal after the U.S. administration is reportedly prepared to annul the September increase in tariffs on Chinese imports, which affected over $100 billion worth of annual imports.
On the data front, the U.S. reported better-than-expected ISM non-manufacturing data for October, which eased some fears of global economic slowdown.
“As soon as you saw those ISM numbers you had to get out of gold,” said Phillip Streible, senior market analyst at RJO Futures. “The better than expected data has created some upbeat sentiment among investors and that is hurting gold.”
Streible added that last week’s Federal Reserve monetary policy meeting limited losses of gold prices.
“The Fed has told us that they are not going to raise interest rates until there is a material change in inflation and we don’t see that scenario happen for at least the next couple of years and that is good for gold,” he said.