Gold prices recovered earlier losses Thursday to score a modest gain and another finish at a more than six-year high, on the back of haven-related buying spurred on by risks to the global economy.
The magnitude of the gains in the gold market Wednesday "were somewhat disappointing given the 800-point decline in the Dow and an avalanche of dire forecast[s] for the U.S. economy," analysts at Zaner Metals said in daily commentary.
Still, "investors continue to push money toward gold and silver in a flight to quality move, and it should be difficult to completely eliminate economic slowing concerns without an improvement in trade relations or a series of strong U.S. data points," they said.
Gold for December delivery GCZ19, +0.00% tacked on $3.40, or 0.2%, to settle at $1,531.20 an ounce, the highest most-active contract finish since April 11, 2013, FactSet data show. September silver SIU19, -0.22%, however, held onto some if its earlier loss, to finish 6.6 cents, or 0.4% lower, at $17.214 an ounce.
"Prices will remain susceptible to the unpredictable nature of U.S.-China trade headlines while the stable [U.S. dollar] will continue to entice near term profit-taking," said Stephen Innes, managing partner at VM Markets, in a note.
Gold had fallen early Thursday as U.S. benchmark stock indexes moved up following Wednesday's rout, which had been inspired by growing recession fears tied to weak economic data out of Europe and China. An inversion of the main measure of the U.S. yield curve, which is seen as a recession warning signal, amplified Wednesday's losses on Wall Street.
Among economic data Thursday, U.S. retail sales surged in July, climbing by a better-than-expected 0.7%. Industrial production in July, however, fell by 0.2%, marking the second drop in the past four months.
Meanwhile, stocks appeared to take some solace from remarks by a spokesperson for China's foreign ministry who said Beijing still hoped to reach a mutually acceptable solution on the trade conflict. Earlier, China said it was prepared to take unspecified steps to retaliate for planned U.S. tariffs set to take effect on Sept. 1.
In other metals trade, September palladium PAU19, -0.01% rose 1.6% to $1,438.60 an ounce, while October platinum PLV19, +0.04% settled 0.7% lower at $842 an ounce.
September copper HGU19, -0.31% added 0.1% at $2.595 a pound.
Among exchange-traded funds, SPDR Gold Shares GLD, -0.64% edged up by 0.5%.