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Gold prices drop as trade tensions ease

Investing.com – Gold prices traded lower on Friday as the ease of U.S.-China trade tensions, along with other positive signs, drove investors to riskier assets.

Gold Futures for December delivery were down 0.09% at $1,523.85 per ounce on the Comex division of the New York Mercantile Exchange by 10:48 AM ET (02:48 GMT), dropping from this week’s high of $1,564.15.

Risk appetite revived after trade talks are scheduled to resume in early October. China’s Ministry of Commerce confirmed that officials from Beijing and Washington agreed to do so in a phone call this week.

Stronger U.S. economic data also supported to shift to riskier assets. Private payrolls grew by 195,000 in August, higher than the expected 140,000 bump that economists surveyed by Dow Jones had expected. It suggested that the economy sustained a moderate growth despite trade tensions, refuting fears of a recession.

Developments in Hong Kong this week also played a part in weighing down demand for the safe-haven metal. The government announced to formally withdraw the highly controversial bill that has caused social unrest for over two months.

Despite losses today, gold prices have still edged up more than 20% this year. Investors have turned to the yellow metal due to fears over how the trade war will worsen and how the Brexit plan will unfold in the U.K.

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