19.9 C
New York
Wednesday, August 17, 2022

Gold Rises as Dollar Falls on Trade Tensions

Gold Rises as Dollar Falls on Trade Tensions© Reuters. Gold was higher on Monday.

Investing.com – Gold prices were higher on Monday as a lower U.S. dollar bolstered the price of the precious metal.

Comex for December delivery rose 0.20% to $1,202.80 a troy ounce as of 10:34 AM ET (14:34 GMT).

Trade worry offset expectations for a Federal Reserve rate hike in September, pushing the greenback lower and increasing the price of gold. The , which measures the greenback’s strength against a basket of six major currencies, fell 0.37% to 95.03.

Trade tensions with China continued, as U.S. President Donald Trump warned he would impose tariffs on $267 billion worth of Chinese imports, on top of an earlier promise of tariffs on $200 billion worth of Chinese goods. China’s foreign ministry said on Monday that it would respond to any new steps on trade.

“If the U.S. side obstinately clings to its course and takes any new tariff measures against China, then the Chinese side will inevitably take countermeasures to resolutely protect our legitimate rights,” Foreign Ministry spokesman Geng Shuang said.

Meanwhile, U.S. officials are expected to meet with European Union officials in Brussels to discuss trade tariffs.

Friday’s upbeat jobs report locked in the chance of a Fed rate hike at the central banks next meeting Sept. 25-26.

Expectations of higher interest rates tend to boost the dollar by making the currency more attractive to yield-seeking investors.

Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.

Other metals were higher on the Comex, with up 0.42% to $14.230 a troy ounce. Among other precious metals, surged 1.95% to $795.60, while increased 0.69% to $975.50 an ounce. futures rose 0.32% to $2.631 a pound.

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

11,289FansLike
12,893FollowersFollow
748FollowersFollow
- Advertisement -

Latest Articles

Popular Articles