The price of gold declined amid growing optimism
Gold prices on Wednesday fell as investors continued to buy riskier assets amid growing optimism about the trade negotiations between the US and China.
The dollar also weakened: stocks strengthened, even despite the fact that employment data in the US private sector showed a decrease in growth of jobs, and the report of the Institute for supply management showed that growth in the services sector cooled in March.
The dollar index fell about 0.3% to 97,04.
Gold prices fell by $ 0.10, to 1295,30 dollars per ounce. On Tuesday, the June gold futures rose 1.20$ to 1295,40$ per ounce.
Shares on the stock markets increased in connection with increase of risk appetite on optimism over trade talks between US trade representative Robert Leithiser, Finance Minister Stephen Mucina and Vice-Premier of China Liu he.
Ahead of the meeting, a source close to the situation told the Financial Times that high-ranking officials of the United States and China decided most of the issues standing in the way of an agreement to end long-standing trade dispute.
However, officials are looking for ways of observance of the agreement, but Myron Brilliant, Executive Vice President for international Affairs at the U.S. chamber of Commerce, told reporters that the last stage is “the hardest part”.
Financial Times said that the two sides have differences on two key issues: the fate of the existing U.S. tariffs on Chinese goods and the terms of the enforcement mechanism, which requires Washington to ensure that China complied with the deal.
Meanwhile, in economic terms, the ADP report showed much weaker-than-expected growth in the number of jobs in the private sector in March. The report said private sector employment rose by 129 000 jobs in March, after the jump up, revised 197 000 jobs in February.
Economists had expected employment to increase by 170 000 jobs compared to the addition of 183 000 jobs originally reported for the previous month.
A separate report by the Institute for supply management showed that the growth of the service sector in the US slowed in March, after a significant acceleration in the previous month.
ISM said the non-manufacturing index in March fell to 56.1 after rising to 59.7 in February, although a reading above 50 still indicates growth in the service sector.
Economists had expected the index to show a more modest pullback, with the projections assume a decline to 58.0.
The rate of gold remains the focus of investors this year is likely to strengthen against the backdrop of unstable economic and political situation in the world.
Analyst of commodity markets,
Stock Markets Group