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Thursday, July 7, 2022

Gold Prices Edge Up as Dollar Softens Following Trump’s Remarks

Gold Prices Edge Up as Dollar Softens Following Trump’s Remarks© Reuters. Gold prices edged up on Monday on a softer dollar

Investing.com – Gold prices edged up on Monday on a softer dollar. Meanwhile, U.S. President Donald Trump’s criticism on the Fed and global monetary policy over the weekend also helped push the yellow metal’s prices higher.

for August delivery on the Comex division of the New York Mercantile Exchangeis gained 0.11% to a trading price of $1,232.4 each troy ounce at 1:39AM ET (05:39 GMT). 

Trump on Friday reinforced his on raising interest rates, saying it takes away from the United States’ ‘big competitive edge’ and could hurt the U.S. economy.

He also accused the European Union and China of manipulating their currencies.  

“China, the European Union and others have been manipulating their currencies and interest rates lower,” Trump said in a tweet over the weekend. That, coupled with U.S. interest rate hikes, was weakening U.S.’s economy as the dollar strengthened, Trump claimed. 

His comments on currency came after he told CNBC in an interview that he was prepared to impose tariffs on all Chinese goods to the U.S.  

“I’m ready to go to 500,” said Trump, referring to the $505.5 billion in goods from China the U.S. imported in 2017. 

The U.S. and China exchanged new tariffs on $34 billion worth of goods on each other earlier this month. The Trump administration has also announced a list of proposed duties on , although those tariffs have not yet kicked in. 

Gold is usually seen as an alternative investment in times of political and economic uncertainty.

Meanwhile, the dollar slipped on Monday following events over the weekend.

The , which tracks the greenback against a basket of currencies, traded at $94.06 at 1:05AM ET (05:05 GMT), down 0.2% from the previous session.  

A weaker greenback makes dollar-priced gold cheaper for buyers using other currencies.

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Source: Investing.com

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