2019.12.0410:13:00UTC+00Gold Hovers Near 1-month High As Trade Concerns Linger

Gold prices held steady near one-month high on Wednesday as trade war worries deepened and the pound hit a seven-month high against the dollar amid hopes of a Conservative party victory in next week's election.

Spot gold was little changed at $1,477.08 per ounce, after having climbed 1 percent in the previous session to reach its highest level since Nov. 7. U.S. gold futures were down 0.1 percent at $1,482.65.

Trade worries persist after both U.S. President Donald Trump and Commerce Secretary Wilbur Ross suggested the U.S.-China trade deal might have to wait longer until after the 2020 presidential elections.

Ross said in an interview that planned tariffs on Chinese imports will be imposed on Dec. 15 as scheduled unless there is substantive progress in talks.

There was some respite on the data front as a report showed that activity in China's services sector accelerated to a seven-month high in November, hinting at short-term stabilization in the world's second-largest economy.

The euro area private sector growth remained the lowest in six-and-a-half years in November, signaling modest expansion for the fourth quarter, final survey data from IHS Markit showed.

The composite output index held steady at 50.6 in November, coming in slightly above the flash estimate of 50.3.

The IHS Markit/CIPS UK Services Purchasing Managers' Index (PMI) fell in November to 49.3 from October's 50.0 due to uncertainty over Brexit and an imminent national election.

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