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.
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