2018.09.0514:30:00UTC+00Gold Ends Higher As Dollar Retreats After Recent Gains

Gold prices edged higher on Wednesday, as the U.S. dollar eased after recent gains, ahead of a slew of economic data.

The Pound Sterling gained on reports that both the British and German governments have abandoned key Brexit demands. The decision of these governments is expected to result in a Brexit deal.

However, the upside for the yellow metal was just modest amid concerns about international trade conflicts and rising inflation in emerging markets.

Reports indicating that the U.S. administration will likely move ahead with proposed tariffs on $200 billion worth of Chinese imports this week have raised fears about a full-blown global trade war.

Gold futures for December ended up $2.20, or 0.2%, at $1,201.30 an ounce. On Tuesday, gold futures ended down $7.60, or 0.6%, at $1,199.10 an ounce.

Silver futures for December ended up $0.040, at $14.220 an ounce.

Copper futures for December settled at $2.6100 per pound, gaining $0.0080 for the session.

The dollar index eased to 95.14, losing 0.23 or 0.24%.

In economic news from U.S., the Commerce Department's report showed that the U.S. trade deficit widened in the month of July. The report said trade deficit widened to $50.1 billion in July from a revised $45.7 billion in June.

Economists had expected the deficit to widen to $50.1 billion from the $46.3 billion originally reported for the previous month.