22.8 C
New York
Thursday, October 21, 2021

Metal Prices Rocked by Trade-War Fears; Gold Prices Off Lows as Dollar Drops

Metal Prices Rocked by Trade-War Fears; Gold Prices Off Lows as Dollar Drops

Investing.com – Gold prices moved off lows Thursday as the dollar came under pressure after President Donald Trump said he was “not happy” about U.S. interest rate hikes, while renewed trade-war tensions pressured other metal prices.

for August delivery on the Comex division of the New York Mercantile Exchange fell by $4.00 or 0.33%, to $1,223.90 a troy ounce, but remained above its more than one-year low of $1,211.20 seen intraday.

“I’m not happy about it” President Donald Trump said about interest-rate increases during an interview with CNBC Thursday, claiming that “higher rates put us [United States] at a disadvantage.” Trump insisted however, that he would let the “Fed do what they feel is best.”

That prompted traders to scale back some their bullish bets on a faster pace of U.S. rate hikes, forcing the dollar to give up its gains, helping gold prices ease from a more than one-year low.

The , which measures the green against a trade-weighted basket of six major currencies, rose by 0.03% to 94.87. That dollar index had traded as high as 95.44 prior to Trump’s comments.

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, lift the opportunity cost of holding gold as it pays no interest.

While the weaker dollar also offered support to other metals, renewed fears of an escalation in the U.S.-China trade war dominated direction, as copper fell to a one-year low before paring some losses.

China, responsible for more than half of total commodity consumption, accused American officials of making false accusations and fired back against a claim President Xi Jinping is blocking talks with the U.S.

fell 2.10% to $2.70, while fell 2.76% to 2,549.00.

fell 1.63% to 2,003.25, while Nickel futures lost 1.76% to 13,425.00.

fell 1.25% to $15.38 a troy ounce, while fell 0.83% to $811.00.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

10,830FansLike
12,893FollowersFollow
756FollowersFollow
- Advertisement -

Latest Articles

Popular Articles