Gold Struggles for Direction as Stocks Rally

Investing.com – Gold struggled for direction on Monday as the U.S. stock market rallied, dampening investor appetite for the precious metal.

Comex for April delivery fell 0.01% to $1,335.90 a troy ounce as of 11:11 AM ET (15:11 GMT).

The price of the precious metal eased up slightly but was still down as U.S. stocks surged and the dollar remained under pressure. The , which measures the greenback’s strength against a basket of six major currencies, was down 0.23% to 89.61.

Gold is denominated in the U.S. currency and becomes more expensive for holders of other currencies when the dollar rises.

Recent worries that protectionist trade policies from the U.S. and China might result in a trade war had boosted gold in recent days, amid fears over the impact on global economic growth.

Worry eased over the weekend as Chief Economic Adviser Larry Kudlow said that the trade turbulence could be “benign.” Trump tweeted over the weekend that China could remove its trade barriers but on Monday the Foreign Ministry of China blamed the U.S. for trade agitation.

Investors seek out gold as a store of value during times of geopolitical uncertainty or market turmoil, while a weaker dollar makes the dollar-denominated metal cheaper for holders of other currencies.

Meanwhile investor sentiment was also boosted by reports that North Korea had told the U.S. for the first time that it was prepared to discuss denuclearization when their leaders meet.

Elsewhere on the Comex, were up 0.26% to $16.405 a troy ounce. Among other precious metals, platinum surged 2.02% to $936.00, while palladium rose 4.04% to $931.30 an ounce.

Meanwhile, inched up 0.15% to $3.063 a pound.

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