Investing.com – Gold prices turned negative as investor fears over the prospect of trade war eased as President Donald Trump appeared open to lifting tariffs if “new and fair,” North American Free Trade Agreement (NAFTA) is signed.
for April delivery on the Comex division of the New York Mercantile Exchange fell by $3.20, or 0.24%, to $1,320.20 a troy ounce.
In a series of tweets, Trump said: “Tariffs on Steel and Aluminum will only be lifted if “new and fair,” North American Free Trade Agreement (NAFTA) is signed.” He also added that Mexico must “do much more on stopping drugs from pouring into the U.S.”
Also easing investor concerns were comments from House Speaker Paul Ryan who reportedly said the Republican party was “extremely worried” about Trump’s plan as it could spark a trade war, jeopardizing the economic gain from recent tax cuts.
The advanced, pressuring gold to retreat further as the precious metal turned negative for the day amid reduced safe-haven demand.
Gold is sensitive to moves higher in the U.S. dollar – a stronger dollar makes gold more expensive for holders of foreign currency, thus, reduces investor demand for the precious metal.
The overall sentiment on gold has remained fairly negative as investors continued to slash their bullish bets on the yellow metal ahead of the widely expected March interest rate hike in a few weeks.
data showed money managers cut their long bets on gold in the week ended March 2.
In other precious metal trade, fell 0.34% to $16.41 a troy ounce, while lost 0.24% to $962.80 an ounce.
rose 0.18% to $3.13, while rose 0.07% to $2.70.
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Source: Investing.com
