Gold prices recovered after a sharp fall on Thursday as the greenback’s fall from higher levels triggered some buying in the safe haven investment. However, the yellow metal still ended on a slightly weak note.
Gold futures for September tumbled to a 20-month low of $1,160.40 before recovering a substantial portion of lost ground.
Gold futures for December, the most active contract, settled down $1, or 0.84%, at $1,184.00 an ounce, after plunging to a low of $1,167.10 earlier in the session. On Wednesday, December gold futures settled down $15.70, or 1.3%, at $1,185 an ounce.
Silver futures for September settled up $0.259, at $14.713 an ounce.
Copper futures for September ended up $0.0565, at $2.616 per pound.
The dollar moved further away from a 13-month peak on improved risk appetite after China said it would hold a fresh round of talks with the United States later this month in an effort to diffuse tensions.
China’s Ministry of Commerce said that a Chinese delegation led by vice commerce minister Wang Shouwen will travel to the U.S. in late August for trade talks to be held with U.S. Under Secretary of Treasury for International Affairs David Malpass.
In economic news from U.S., data released by the Labor Department showed first-time claims for U.S. unemployment benefits unexpectedly edged lower in the week ended August 11. The report said initial jobless claims dipped to 212,000, a decrease of 2,000 from the previous week’s revised level of 214,000.
The report also said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, fell by 39,000 to 1.721 million in the week ended August 4th.
According to a report released by the Federal Reserve Bank of Philadelphia, growth in Philadelphia-area manufacturing activity slowed by much more than anticipated in the month of August, with the index tumbling to 11.9, from 25.7 a month earlier.
The bigger than expected decrease by the headline index was partly due to a significant slowdown in the pace of new orders growth, as the new orders index plunged to 9.9 in August from 31.4 in July.
Meanwhile, data released by the Commerce Department showed U.S. housing starts to have risen by 0.9% to an annual rate of 1.168 million in July after plunging by 12.9% to a revised rate of 1.158 million in June.