Investing.com – Gold prices remained supported on Friday, as news of U.S. tariffs on steel and aluminum imports continued to weigh on the greenback and boost demand for safe-haven assets.
Comex were up 1.31% at $1,322.3 a troy ounce by 08:30 a.m. ET (12:30 GMT), off Thursday’s two-month trough of $1,303.60.
Risk sentiment waned after U.S. President Donald Trump announced plans on Thursday to of 25% on imported steel and 10% on aluminum, in a move to “protect U.S. industry”.
The move sparked concerns over potential trade wars, which would have a negative impact on the U.S. economy.
The news overshadowed positive remarks by Federal Reserve Chair Powell, who told the Senate Banking Committee on Thursday that there was .
Two days earlier, the Fed president had reiterated that the U.S. central bank would likely move forward with gradual increases in interest rates.
Separately, New York Federal Reserve President William Dudley said on Thursday that four interest-rate hikes this year would constitute a “gradual” tightening.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.28% at 89.98, off Thursday’s six-week peak of 90.89.
Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, advanced 0.98% to $16.44 a troy ounce.
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Source: Investing.com
