2019.09.2606:34:00UTC+00Gold Holds Steady After Selloff

Gold prices steadied on Thursday after declining nearly 2 percent in the previous session as U.S. President Donald Trump said the trade deal with China could happen sooner than expected.

Spot gold rose 0.3 percent to $1,508.12 per ounce, after having fallen 1.8 percent in the previous session, its biggest single-day percentage decline since Sept. 5. U.S. gold futures were up 0.2 percent at $1,515.25 per ounce.

The dollar index held steady today after posting its sharpest daily gain in three months overnight on trade deal optimism.

Uncertainty over the U.S.-China trade war persisted, although China's commerce ministry reportedly said the two sides are in close communication about the next round of talks in October.

Meanwhile, the U.S. and Japan have signed a limited trade deal, under which Japan will open new markets to about $7 billion in U.S. agricultural products.

After sales of new U.S. single-family homes rebounded more than expected in August, investors now await a batch of reports on second quarter GDP, weekly jobless claims and pending home sales for possible clues over the Fed's future actions.