Investing.com – Gold prices rebounded on Tuesday morning from a low level overnight, as the dollar continued to stay weak although a global trade war initiated by Trump’s harsh tariff plan becomes less likely.
Fears over the possibility of a global trade war appeared to have eased somewhat after House of Representatives Speaker Paul Ryan put pressure on President Trump to rethink his tariffs plan.House Republications were reportedly drafting a letter to Trump about trade concerns, but Trump has openly responded by saying he would not back down.
The that tracks the greenback against a basket of six major currencies last stood 0.07% lower at 89.9, still below the 90 handle.
Elsewhere, outcome of the Italian elections remains uncertain, triggering concerns for the euro zone that give more support to the precious medal.
Comex were up 0.31% at $1,324.10 a troy ounce by 12:57am ET, rebounding from a two-month low of $1,303.60 on Thursday.
Gold is sensitive to moves in the dollar and U.S. rates, as a weaker dollar makes gold cheaper for holders of foreign currency, while an increasing U.S. rates increase the opportunity cost of holding non-yielding assets.
U.S. equities pushed higher following the development, with the closed 1.4% higher and the rose 1.1% on Tuesday morning.
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Source: Investing.com
