Investing.com – Metal prices were mostly higher Friday as fears the latest twist in the U.S.-China trade saga may lead to a full-blown trade war were offset by weakness in the dollar.
for August delivery on the Comex division of the New York Mercantile Exchange rose by $3.30, or 0.52%, to $1,223.40 a troy ounce.
The dollar came under pressure Friday, raising demand for gold prices, after data showed the U.S. economy created fewer jobs than expected in July.
The U.S. economy just 157,000 jobs in June, well below , while the unemployment rate , the Labor Department said on Friday.
The , which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.08% to 94.92.
The weaker jobs report did little to alter expectations that the Federal Reserve would hike rates at its next meeting in September.
According to , more than 90% of traders expect the Fed to raise rates for the third time this year in September.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding gold, as it pays no interest.
The dollar weakened on concerns that the U.S.-China tit-for-tat trade spat was headed for full-blown trade war after China hit back against President Trump’s recent threat to impose harsher trade restrictions on good imported from China.
China said Friday it would impose duties of 25%, 20%, 10% and 5% on US products worth more than $60 billion if the Trump administration followed through on threats to impose harsher tariffs on $200 billion of Chinese goods.
rose 0.79% to $2.76, while rose 1.62% at 2,606.50.
fell 0.55% to 2,028.00, while rose 1.27% to 13,515.00.
rose 0.52% to $15.47 a troy ounce, while fell 0.86% to $835.30.
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