Gold Prices Fall to 1-Week Lows on U.S. Dollar Strength

Investing.com – Gold prices fell to one-week lows on Friday, as upbeat U.S. employment data lent further support to the dollar, while news of an upcoming meeting between the U.S. and North-Korean leaders continued to support risk sentiment.

Comex were down 0.38% at $1,317.1 a troy ounce by 08:55 a.m. ET (12:55 GMT).

Official data showed that the U.S. economy added in February, beating expectations for 313,000. However, the unemployment rate held steady at , missing expectations for a further drop to 4.0%.

The report also showed that average hourly earnings rose only last month, disappointing expectations for a 0.2% gain.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.17% at 90.27, the highest since March 1.

Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.

Meanwhile, market sentiment was boosted after U.S. President Donald Trump on Thursday announced his willingness to accept an invitation to meet North Korean leader Kim Jong Un before May, with hopes of achieving “permanent denuclearization”.

South Korea’s National Security Office said Kim “expressed eagerness to meet President Trump as soon as possible” and that the North-Korean leader pledged to “refrain from any further nuclear or missile tests” while talks are underway.

At the same time, concerns over a potential global trade war due to U.S. tariffs on steel and aluminum imports eased after President Trump signed a more tempered version of the plan on Thursday.

Trump the imposition of 25% tariffs on steel imports and 10% for aluminium but announced exemptions for Canada and Mexico and left the door open for exceptions for other countries.

Japan reacted to the news by saying the move would have a “big impact” on the countries’ close bilateral ties, while China said it was “resolutely opposed” to the decision. South Korea said it may file a complaint to the World Trade Organization.

Elsewhere on the Comex, dropped 0.52% to $16.43 a troy ounce.

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