2018.11.0114:17:00UTC+00Gold Ends Sharply Higher As Dollar Tumbles

Gold prices climbed higher on Thursday, rebounding from 3-week lows, as the dollar softened against major currencies after having rallied to 16-month high earlier this week.

The dollar index dropped to 96.22, losing about 0.9% as the currency lost ground against the euro and pound on reports the UK and the European Union clinched a tentative deal that would grant British companies continued approach to European markets after Brexit.

According to Times report, the UK and European Union negotiations agreed on a deal on all aspects of a future partnership on services, as well as the exchange of data.

The greenback lost ground against the Canadian loonie, the Aussie and the Japanese Yen as well.

Gold futures for December ended up $21.30, or about 1.8%, at $1,236.30 an ounce, the highest settlement since July 16. On Wednesday, gold futures ended down $10.30, or 0.8%, at $1,215.00 an ounce.

Silver futures for December were rising $0.495, at $14.777 an ounce, a few minutes ahead of close.

Copper futures for December were up $0.0625, at $2.7215 per pound.

According to the data released by the Labor Department, initial jobless claims in U.S. edged down to 214,000, a decrease of 2,000 from the previous week's revised level of 216,000. Economists had expected jobless claims to come in unchanged compared to the 215,000 originally reported for the previous week.

A separate report from the Labor Department said labor productivity climbed by 2.2% in the third quarter after jumping by 3% in the second quarter. Economists had expected productivity to increase by about 2%.

Meanwhile, the report said unit labor costs surged up by 1.2% in the third quarter after slumping by 1% in the second quarter.

A report from the Institute for Supply Management showed a bigger than expected slowdown in the pace of growth in manufacturing activity in the month of October. The ISM said its purchasing managers index dropped to 57.7 in October from 59.8 in September.

The market now awaits the crucial monthly jobs report from the Labor Department.