2019.11.1817:54:00UTC+00Gold Rebounds After Early Weakness, Settles Modestly Higher

Gold futures rebounded from early losses and settled modestly higher on Monday as global equities turned subdued amid doubts about a potential U.S.-China interim trade deal.

Gold prices drifted lower earlier in the session as media reports from China said China's Vice Premier Liu He spoke with US administrative officials over the weekend about a phase-one trade deal.

Reports said Washington and Beijing had a high-level phone call on Saturday, discussing core issues, and that the discussions were constructive.

However, gold prices recovered after a tweet from CNBC's Beijing Bureau Chief Eunice Yoon suggested Chinese officials have grown pessimistic about the chances for a trade deal due to U.S. President Donald Trump's reluctance to roll back tariffs.

The dollar's weakness supported the yellow metal's rise. The dollar index, which stayed in a tight range around the flat line this morning, shed ground and eased to 97.68 a little before noon. The index was last seen hovering around 97.75, down 0.25% from previous close.

Gold futures for December ended up $3.40, or about 0.2%, at $1,471.90 an ounce, recovering from a low of $1,456.60.

On Friday, gold futures ended down $4.90, or 0.3%, at $1,468.50 an ounce.

Silver futures for December gained $0.052, settling at $17.000 an ounce, while Copper futures for December settled at $2.6200 per pound, down $0.0180 from previous close.

In U.S. economic news, a report from the National Association of Home Builders said homebuilder confidence in U.S. edged slightly lower in the month of November.

The report said the NAHB/Wells Fargo Housing Market Index slipped to 70 in November after climbing to 71 in October. Economists had expected the index to come in unchanged.

The modest decrease came after the housing market index rose for four straight months to reach its highest level since hitting a matching reading in February of 2018.